Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link
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, attractive valuation levels, 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:
- The revenue growth came in higher than the industry average of 6.5%. Since the same quarter one year prior, revenues rose by 12.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- JST's debt-to-equity ratio is very low at 0.24 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, JST has a quick ratio of 2.07, which demonstrates the ability of the company to cover short-term liquidity needs.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Electrical Equipment industry average. The net income increased by 20.6% when compared to the same quarter one year prior, going from $4.38 million to $5.28 million.
- Net operating cash flow has significantly increased by 126.89% to $3.46 million when compared to the same quarter last year. In addition, JINPAN INTERNATIONAL LTD has also vastly surpassed the industry average cash flow growth rate of 3.00%.
Jinpan International Limited, through its subsidiaries, designs, manufactures, and sells electrical power control and distribution equipment in the People's Republic of China, the United States, and Europe. Jinpan International has a market cap of $113.8 million and is part of the technology sector and electronics industry. Shares are down 21.5% year to date as of the close of trading on Friday.
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