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, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
Highlights from the ratings report include:
- HDSN's revenue growth has slightly outpaced the industry average of 1.7%. Since the same quarter one year prior, revenues slightly increased by 7.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- HUDSON TECHNOLOGIES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, HUDSON TECHNOLOGIES INC increased its bottom line by earning $0.04 versus $0.03 in the prior year. This year, the market expects an improvement in earnings ($0.09 versus $0.04).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Services & Supplies industry. The net income increased by 130.6% when compared to the same quarter one year prior, rising from $1.09 million to $2.51 million.
- 41.00% is the gross profit margin for HUDSON TECHNOLOGIES INC which we consider to be strong. It has increased significantly from the same period last year. Along with this, the net profit margin of 16.90% significantly outperformed against the industry average.
- Net operating cash flow has significantly increased by 61.39% to -$2.13 million when compared to the same quarter last year. In addition, HUDSON TECHNOLOGIES INC has also vastly surpassed the industry average cash flow growth rate of -18.35%.
Hudson Technologies, Inc., through its subsidiary, Hudson Technologies Company, provides refrigerant services and solutions in the refrigeration industry primarily in the United States. The company has a P/E ratio of 37.8, equal to the average wholesale industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Hudson Technology has a market cap of $89.9 million and is part of the
industry. Shares are up 173.8% year to date as of the close of trading on Tuesday.
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-- Written by a member of TheStreet RatingsStaff