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 revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 9.2%. Since the same quarter one year prior, revenues slightly increased by 1.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Although HHGP's debt-to-equity ratio of 0.04 is very low, it is currently higher than that of the industry average. To add to this, HHGP has a quick ratio of 1.87, which demonstrates the ability of the company to cover short-term liquidity needs.
- HUDSON HIGHLAND GROUP 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, HUDSON HIGHLAND GROUP INC turned its bottom line around by earning $0.34 versus -$0.17 in the prior year. This year, the market expects an improvement in earnings ($0.36 versus $0.34).
- Net operating cash flow has significantly increased by 258.64% to $20.40 million when compared to the same quarter last year. In addition, HUDSON HIGHLAND GROUP INC has also vastly surpassed the industry average cash flow growth rate of -1.14%.
Hudson Highland Group, Inc. provides specialized professional-level recruitment and related talent solutions worldwide. The company has a P/E ratio of 16.2, below the average diversified services industry P/E ratio of 19.1 and below the S&P 500 P/E ratio of 17.7. Hudson Highland Group has a market cap of $175.4 million and is part of the
industry. Shares are up 8.4% year to date as of the close of trading on Friday.
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-- Written by a member of TheStreet RatingsStaff