NEW YORK (
-- DGSE Companies
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, reasonable valuation levels, 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 ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income increased by 333.1% when compared to the same quarter one year prior, rising from -$0.13 million to $0.30 million.
- 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 Textiles, Apparel & Luxury Goods industry and the overall market, DGSE COMPANIES INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Powered by its strong earnings growth of 400.00% and other important driving factors, this stock has surged by 129.08% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, DGSE should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The revenue growth greatly exceeded the industry average of 4.7%. Since the same quarter one year prior, revenues rose by 42.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
DSGE Companies, Inc., together with its subsidiaries, buys and sells jewelry, bullion products, and rare coins to the wholesale and retail customers in the United States. The company has a P/E ratio of 9.8, equal to the average specialty retail industry P/E ratio and below the S&P 500 P/E ratio of 17.7. DGSE Companies has a market cap of $59.8 million and is part of the
industry. Shares are up 34.3% year to date as of the close of trading on Wednesday.
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