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 good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 24.6%. Since the same quarter one year prior, revenues rose by 48.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- ALICO INC 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 two years. During the past fiscal year, ALICO INC turned its bottom line around by earning $0.97 versus -$0.09 in the prior year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food Products industry. The net income increased by 173.4% when compared to the same quarter one year prior, rising from $2.71 million to $7.41 million.
- Net operating cash flow has increased to $13.84 million or 41.36% when compared to the same quarter last year. In addition, ALICO INC has also vastly surpassed the industry average cash flow growth rate of -4852.75%.
Alico, Inc. operates as a land management company in central and southwest Florida. The company cultivates citrus trees to produce citrus; purchases and resells citrus fruits; and cultivates raw sugarcane for sale. The company has a P/E ratio of 13, equal to the average food & beverage industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Alico has a market cap of $178 million and is part of the
industry. Shares are up 28.7% year to date as of the close of trading on Friday.
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-- Written by a member of TheStreet Ratings Staff