NEW YORK (
-- ICG Group
) 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, increase in net income, expanding profit margins and reasonable valuation levels. 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 greatly exceeded the industry average of 43.0%. Since the same quarter one year prior, revenues slightly increased by 9.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- ICGE's debt-to-equity ratio is very low at 0.06 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 4.51, which clearly demonstrates the ability to cover short-term cash needs.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 6616.5% when compared to the same quarter one year prior, rising from $0.27 million to $17.87 million.
- 38.90% is the gross profit margin for ICG GROUP INC which we consider to be strong. Regardless of ICGE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ICGE's net profit margin of 49.50% significantly outperformed against the industry.
ICG Group, Inc. is a private equity and venture capital firm specializing in patient capital, growth capital, acquisitions, and mid and late venture investments in public and private companies. The company has a P/E ratio of 39, above the average internet industry P/E ratio of 36.9 and above the S&P 500 P/E ratio of 17.7. ICG Group has a market cap of $345.6 million and is part of the
industry. Shares are up 21.2% year to date as of the close of trading on Friday.
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-- Written by a member of TheStreet RatingsStaff