NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 16.6%. Since the same quarter one year prior, revenues rose by 29.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- ACETO CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, ACETO CORP increased its bottom line by earning $0.33 versus $0.26 in the prior year. This year, the market expects an improvement in earnings ($0.61 versus $0.33).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Trading Companies & Distributors industry. The net income increased by 492.5% when compared to the same quarter one year prior, rising from -$1.17 million to $4.59 million.
- Despite currently having a low debt-to-equity ratio of 0.32, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.47 is sturdy.
Aceto Corporation engages in the sourcing, regulatory support, marketing, and distribution of pharmaceutical intermediates and active ingredients, finished dosage form generics, nutraceutical products, agricultural protection products, and specialty chemicals worldwide. The company has a P/E ratio of 13, below the average chemicals industry P/E ratio of 21.5 and below the S&P 500 P/E ratio of 17.7. Aceto has a market cap of $190 million and is part of the
industry. Shares are up 11.6% year to date as of the close of trading on Monday.
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-- Written by a member of TheStreet RatingsStaff