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NEW YORK (TheStreet) -- Hyster-Yale Materials (HY) - Get Hyster-Yale Materials Handling, Inc. Class A 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 HYSTER-YALE MATERIALS HNDLNG (HY) a BUY. This is driven by a number of 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, attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- HY's revenue growth has slightly outpaced the industry average of 4.2%. Since the same quarter one year prior, revenues slightly increased by 3.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- HY's debt-to-equity ratio is very low at 0.08 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.86 is somewhat weak and could be cause for future problems.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Machinery industry and the overall market, HYSTER-YALE MATERIALS HNDLNG's return on equity exceeds that of both the industry average and the S&P 500.
- HYSTER-YALE MATERIALS HNDLNG's earnings per share declined by 9.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, HYSTER-YALE MATERIALS HNDLNG increased its bottom line by earning $6.56 versus $3.41 in the prior year. For the next year, the market is expecting a contraction of 11.3% in earnings ($5.82 versus $6.56).
- You can view the full analysis from the report here: HY Ratings Report