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NEW YORK (TheStreet) -- Solar Capital (SLRC) - Get Report has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of B.  TheStreet Ratings Team has this to say about their recommendation:

"We rate SOLAR CAPITAL LTD (SLRC) a BUY. This is driven by some important positives, 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 increase in net income, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Capital Markets industry average. The net income increased by 20.8% when compared to the same quarter one year prior, going from $10.57 million to $12.77 million.
• The gross profit margin for SOLAR CAPITAL LTD is currently very high, coming in at 70.49%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 45.02% significantly outperformed against the industry average.
• SLRC, with its decline in revenue, underperformed when compared the industry average of 13.1%. Since the same quarter one year prior, revenues fell by 34.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
• The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Capital Markets industry and the overall market, SOLAR CAPITAL LTD's return on equity is below that of both the industry average and the S&P 500.
• SOLAR CAPITAL LTD has improved earnings per share by 25.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, SOLAR CAPITAL LTD reported lower earnings of $1.70 versus $3.12 in the prior year. For the next year, the market is expecting a contraction of 5.6% in earnings ($1.61 versus $1.70).
• You can view the full analysis from the report here: SLRC Ratings Report