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NEW YORK (TheStreet) -- Cray (CRAY) - Get Cray Inc. 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 CRAY INC (CRAY) 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 robust revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- CRAY's very impressive revenue growth greatly exceeded the industry average of 13.6%. Since the same quarter one year prior, revenues leaped by 193.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- CRAY has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, CRAY has a quick ratio of 1.50, which demonstrates the ability of the company to cover short-term liquidity needs.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Computers & Peripherals industry. The net income increased by 166.8% when compared to the same quarter one year prior, rising from -$11.03 million to $7.37 million.
- Net operating cash flow has increased to -$65.54 million or 39.59% when compared to the same quarter last year. In addition, CRAY INC has also modestly surpassed the industry average cash flow growth rate of 35.65%.
- Powered by its strong earnings growth of 162.06% and other important driving factors, this stock has surged by 33.89% 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.
- You can view the full analysis from the report here: CRAY Ratings Report