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 robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 14.1%. Since the same quarter one year prior, revenues rose by 33.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- LONG 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. Along with this, the company maintains a quick ratio of 9.85, which clearly demonstrates the ability to cover short-term cash needs.
- ELONG INC -ADR 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. We feel that this trend should continue. During the past fiscal year, ELONG INC -ADR increased its bottom line by earning $0.19 versus $0.11 in the prior year. This year, the market expects an improvement in earnings ($0.51 versus $0.19).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 264.7% when compared to the same quarter one year prior, rising from $0.67 million to $2.44 million.
- The gross profit margin for ELONG INC -ADR is currently very high, coming in at 77.90%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.40% trails the industry average.
eLong Inc. operates as an online travel service provider in the People's Republic of China. The company has a P/E ratio of 127.4, above the average diversified services industry P/E ratio of 110.8 and above the S&P 500 P/E ratio of 17.7. eLong has a market cap of $416.5 million and is part of the
industry. Shares are up 13.1% year to date as of the close of trading on Tuesday.
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-- Written by a member of TheStreet RatingsStaff