NEW YORK (
-- Compx International
) 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, compelling growth in net income, good cash flow from operations, impressive record of earnings per share growth and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- Powered by its strong earnings growth of 266.66% and other important driving factors, this stock has surged by 79.90% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- COMPX INTERNATIONAL 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 year. During the past fiscal year, COMPX INTERNATIONAL INC turned its bottom line around by earning $0.24 versus -$0.17 in the prior year.
- Net operating cash flow has significantly increased by 56.55% to $7.20 million when compared to the same quarter last year. In addition, COMPX INTERNATIONAL INC has also vastly surpassed the industry average cash flow growth rate of -3.58%.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Services & Supplies industry. The net income increased by 285.4% when compared to the same quarter one year prior, rising from -$0.34 million to $0.63 million.
- The revenue growth came in higher than the industry average of 0.9%. Since the same quarter one year prior, revenues rose by 11.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
CompX International Inc. manufactures and sells security products, precision ball bearing slides, and ergonomic computer support systems used in the office furniture, transportation, postal, tool storage, appliance, and various other industries. The company has a P/E ratio of 63.9, equal to the average industrial industry P/E ratio and above the S&P 500 P/E ratio of 16.8. Compx International has a market cap of $37.9 million and is part of the
industry. The stock last closed at $15.98 and the average volume of shares traded for Compx International has been 3,100 shares per day over the past 30 days. Shares are up 38.6% year to date as of the close of trading on Monday.
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