NEW YORK (
-- Enpro Industries
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The debt-to-equity ratio is somewhat low, currently at 0.79, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.27, which illustrates the ability to avoid short-term cash problems.
- The revenue growth significantly trails the industry average of 48.9%. Since the same quarter one year prior, revenues rose by 18.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- ENPRO INDUSTRIES INC 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, ENPRO INDUSTRIES INC turned its bottom line around by earning $2.98 versus -$7.18 in the prior year. This year, the market expects an improvement in earnings ($3.09 versus $2.98).
- Powered by its strong earnings growth of 162.96% and other important driving factors, this stock has surged by 40.63% 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, NPO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
EnPro Industries, Inc., together with its subsidiaries, designs, develops, manufactures, and markets proprietary engineered industrial products primarily in the United States and Europe. The company has a P/E ratio of 12.9, equal to the average industrial industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Enpro has a market cap of $908.7 million and is part of the
industry. Shares are up 4.8% year to date as of the close of trading on Tuesday.
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