Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of B . The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, good cash flow from operations, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
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Highlights from the ratings report include:
- CAM's revenue growth has slightly outpaced the industry average of 11.6%. Since the same quarter one year prior, revenues rose by 18.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Energy Equipment & Services industry average. The net income increased by 17.9% when compared to the same quarter one year prior, going from $148.10 million to $174.60 million.
- Net operating cash flow has significantly increased by 61.08% to $163.50 million when compared to the same quarter last year. In addition, CAMERON INTERNATIONAL CORP has also vastly surpassed the industry average cash flow growth rate of -49.70%.
- CAMERON INTERNATIONAL CORP has improved earnings per share by 18.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CAMERON INTERNATIONAL CORP reported lower earnings of $2.09 versus $2.27 in the prior year. This year, the market expects an improvement in earnings ($3.25 versus $2.09).
- Despite currently having a low debt-to-equity ratio of 0.40, 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 1.16 is sturdy.
Cameron International Corporation provides flow equipment products, systems, and services worldwide. Cameron International has a market cap of $13.45 billion and is part of the basic materials sector and energy industry. The company has a P/E ratio of 23.6, above the S&P 500 P/E ratio of 17.7. Shares are up 11% year to date as of the close of trading on Tuesday.
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--Written by a member of TheStreet Ratings Staff.
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