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NEW YORK (TheStreet) -- Gaming Partners International (GPIC) - Get Gaming Partners International Corporation 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 GAMING PARTNERS INTL CORP (GPIC) a BUY. This is driven by a few notable strengths, 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 9.5%. Since the same quarter one year prior, revenues rose by 49.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- GPIC's debt-to-equity ratio is very low at 0.21 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.03, which illustrates the ability to avoid short-term cash problems.
- 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 3195.2% when compared to the same quarter one year prior, rising from $0.08 million to $2.77 million.
- Net operating cash flow has significantly increased by 161.66% to $0.34 million when compared to the same quarter last year. In addition, GAMING PARTNERS INTL CORP has also vastly surpassed the industry average cash flow growth rate of -17.72%.
- 37.70% is the gross profit margin for GAMING PARTNERS INTL CORP which we consider to be strong. 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 13.66% trails the industry average.
- You can view the full analysis from the report here: GPIC Ratings Report