NEW YORK (
-- ICF International
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- 38.10% is the gross profit margin for ICF INTERNATIONAL INC which we consider to be strong. Regardless of ICFI's high profit margin, it has managed to decrease from the same period last year.
- Although ICFI's debt-to-equity ratio of 0.24 is very low, it is currently higher than that of the industry average. To add to this, ICFI has a quick ratio of 1.57, which demonstrates the ability of the company to cover short-term liquidity needs.
- Despite its growing revenue, the company underperformed as compared with the industry average of 11.3%. Since the same quarter one year prior, revenues rose by 10.8%. 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.
- The net income growth from the same quarter one year ago has significantly exceeded that of the Professional Services industry average, but is less than that of the S&P 500. The net income increased by 15.6% when compared to the same quarter one year prior, going from $6.19 million to $7.16 million.
ICF International, Inc. provides management, technology, and policy consulting and implementation services to government, commercial, and international clients worldwide. The company has a P/E ratio of 17.3, equal to the average diversified services industry P/E ratio and above the S&P 500 P/E ratio of 16.4. ICF International has a market cap of $467.9 million and is part of the
industry. Shares are down 6.9% year to date as of the close of trading on Friday.
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