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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, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
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Highlights from the ratings report include:
- ISIL's revenue growth has slightly outpaced the industry average of 4.8%. Since the same quarter one year prior, revenues slightly increased by 6.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- ISIL has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, ISIL has a quick ratio of 1.89, which demonstrates the ability of the company to cover short-term liquidity needs.
- INTERSIL CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, INTERSIL CORP turned its bottom line around by earning $0.03 versus -$0.29 in the prior year. This year, the market expects an improvement in earnings ($0.68 versus $0.03).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 134.4% when compared to the same quarter one year prior, rising from -$21.82 million to $7.51 million.
- Net operating cash flow has significantly increased by 99.66% to $46.27 million when compared to the same quarter last year. In addition, INTERSIL CORP has also vastly surpassed the industry average cash flow growth rate of -75.37%.
Intersil Corporation designs, develops, manufactures, and markets analog, mixed-signal, and power management integrated circuits (ICs) for applications in the industrial and infrastructure, personal computing, and consumer electronics markets. The company has a P/E ratio of 19.2, above the S&P 500 P/E ratio of 17.7. Intersil has a market cap of $1.45 billion and is part of the technology sector and electronics industry. Shares are down 0.7% year to date as of the close of trading on Friday.
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