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 largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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Highlights from the ratings report include:
- ISCA's debt-to-equity ratio is very low at 0.28 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.39, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has significantly increased by 57.93% to $31.23 million when compared to the same quarter last year. In addition, INTL SPEEDWAY CORP has also vastly surpassed the industry average cash flow growth rate of 1.06%.
- The gross profit margin for INTL SPEEDWAY CORP is rather high; currently it is at 56.90%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 13.50% trails the industry average.
- INTL SPEEDWAY CORP's earnings per share declined by 17.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, INTL SPEEDWAY CORP increased its bottom line by earning $1.46 versus $1.14 in the prior year. This year, the market expects an improvement in earnings ($1.60 versus $1.46).
International Speedway Corporation, together with its subsidiaries, promotes motorsports themed entertainment activities in the United States. The company's motorsports themed event operations consist of racing events at its motorsports entertainment facilities. The company has a P/E ratio of 18.5, equal to the average leisure industry P/E ratio and above the S&P 500 P/E ratio of 17.7. International Speedway has a market cap of $667.5 million and is part of the
industry. Shares are up 0.7% year to date as of the close of trading on Thursday.
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-- Written by a member of TheStreet Ratings Staff
TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.