Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link
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, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.
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Highlights from the ratings report include:
- Powered by its strong earnings growth of 107.83% and other important driving factors, this stock has surged by 28.67% 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, HHS should continue to move higher despite the fact that it has already enjoyed a very nice gain 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 Media industry. The net income increased by 107.6% when compared to the same quarter one year prior, rising from -$109.71 million to $8.31 million.
- The current debt-to-equity ratio, 0.31, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.46, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has increased to $16.70 million or 21.96% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -15.75%.
Harte-Hanks, Inc., a direct and targeted marketing company, provides direct and digital marketing services, and shopper advertising opportunities to a range of local, regional, national, and international consumer and business-to-business marketers in the United States and other countries. Harte-Hanks has a market cap of $569.7 million and is part of the services sector and media industry. Shares are up 55.3% year to date as of the close of trading on Thursday.
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