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NEW YORK (TheStreet) -- Corporate Executive Board (CEB) 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 CORPORATE EXECUTIVE BRD CO (CEB) a BUY. This is driven by several positive factors, 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 revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and compelling growth in net income. 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 2.1%. Since the same quarter one year prior, revenues rose by 13.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 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 Professional Services industry and the overall market, CORPORATE EXECUTIVE BRD CO's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The gross profit margin for CORPORATE EXECUTIVE BRD CO is rather high; currently it is at 65.32%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 9.26% is above that of the industry average.
- Net operating cash flow has significantly increased by 59.94% to $27.74 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 13.67%.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Professional Services industry. The net income increased by 497.2% when compared to the same quarter one year prior, rising from -$5.38 million to $21.38 million.
- You can view the full analysis from the report here: CEB Ratings Report