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 solid stock price performance, compelling growth in net income, revenue growth, notable return on equity and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- Powered by its strong earnings growth of 300.00% and other important driving factors, this stock has surged by 26.29% 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.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food Products industry. The net income increased by 284.5% when compared to the same quarter one year prior, rising from $16.05 million to $61.71 million.
- GMK's revenue growth trails the industry average of 24.7%. Since the same quarter one year prior, revenues rose by 14.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 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 Food Products industry and the overall market, GRUMA SAB DE CV's return on equity significantly exceeds that of both the industry average and the S&P 500.
Gruma, S.A.B. de C.V., through its subsidiaries, engages in the production, distribution, and sale of corn flour, wheat flour, tortillas, and other related products. The company has a P/E ratio of 64.9, above the average food & beverage industry P/E ratio of 31.3 and above the S&P 500 P/E ratio of 17.7. Gruma S.A.B. de C.V has a market cap of $1.13 billion and is part of the
industry. Shares are up 33% year to date as of the close of trading on Friday.
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-- Written by a member of TheStreet RatingsStaff