NEW YORK (TheStreet) -- Shares of Cash America International, Inc. (CSH) are surging 4.77% to $43.50 after Sterne Agee upgraded its rating to "buy" from "neutral," and raised its price target to $50 from $40.
The firm also boosted its 2015 earnings per share estimate to $5.70 from $5.00, and said in a note that the company is "well positioned to continue to harvest value in this market."
Separately, TheStreet Ratings team rates CASH AMERICA INTL INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate CASH AMERICA INTL INC (CSH) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- CSH's revenue growth has slightly outpaced the industry average of 1.3%. Since the same quarter one year prior, revenues slightly increased by 5.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.57, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 4.46, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for CASH AMERICA INTL INC is rather high; currently it is at 59.83%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.27% trails the industry average.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Consumer Finance industry average. The net income increased by 4.1% when compared to the same quarter one year prior, going from $43.93 million to $45.74 million.
- You can view the full analysis from the report here: CSH Ratings Report
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