NEW YORK (
) 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, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
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Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 15.6%. Since the same quarter one year prior, revenues slightly increased by 4.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- CSRE's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, CSRE has a quick ratio of 1.59, which demonstrates the ability of the company to cover short-term liquidity needs.
- Powered by its strong earnings growth of 110.71% and other important driving factors, this stock has surged by 147.88% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- CSR PLC 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 two years. During the past fiscal year, CSR PLC increased its bottom line by earning $1.03 versus $0.76 in the prior year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 108.0% when compared to the same quarter one year prior, rising from -$13.97 million to $1.12 million.
CSR plc, a fabless semiconductor company, designs and develops semiconductor integrated circuits and software solutions in the United Kingdom, rest of Europe, the Americas, and Asia. CSR has a market cap of $1.41 billion and is part of the technology sector and electronics industry. Shares are up 53.9% year to date as of the close of trading on Wednesday.
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