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NEW YORK (TheStreet) -- Chefs' Warehouse(CHEF) - 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 CHEFS' WAREHOUSE INC (CHEF) 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 robust revenue growth, increase in net income, good cash flow from operations and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 0.8%. Since the same quarter one year prior, revenues rose by 22.0%. 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.
- The net income growth from the same quarter one year ago has exceeded that of the Food & Staples Retailing industry average, but is less than that of the S&P 500. The net income increased by 1.1% when compared to the same quarter one year prior, going from $4.16 million to $4.21 million.
- Net operating cash flow has significantly increased by 60.21% to -$2.42 million when compared to the same quarter last year. Despite an increase in cash flow, CHEFS' WAREHOUSE INC's cash flow growth rate is still lower than the industry average growth rate of 81.68%.
- CHEFS' WAREHOUSE INC's earnings per share declined by 15.0% 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, CHEFS' WAREHOUSE INC increased its bottom line by earning $0.77 versus $0.69 in the prior year. For the next year, the market is expecting a contraction of 20.8% in earnings ($0.61 versus $0.77).
- You can view the full analysis from the report here: CHEF Ratings Report