NEW YORK (
-- Audiovox Corporation
) has been upgraded by TheStreet Ratings from hold to buy. 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 and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Distributors industry and the overall market, AUDIOVOX CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- AUDIOVOX CORP has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, AUDIOVOX CORP turned its bottom line around by earning $0.98 versus -$3.10 in the prior year.
- VOXX's debt-to-equity ratio is very low at 0.04 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, VOXX has a quick ratio of 2.10, which demonstrates the ability of the company to cover short-term liquidity needs.
- VOXX's revenue growth trails the industry average of 17.2%. Since the same quarter one year prior, revenues slightly increased by 4.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
Audiovox Corporation, through its subsidiaries, operates as a distributor and value added service provider in the accessory, mobile, and consumer electronics industries. The company has a P/E ratio of 7.4, below the average wholesale industry P/E ratio of 13.7 and below the S&P 500 P/E ratio of 17.7. Audiovox has a market cap of $154.2 million and is part of the
industry. Shares are down 10.8% year to date as of the close of trading on Thursday.
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