NEW YORK (
-- Johnson Outdoors
) 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, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Leisure Equipment & Products industry average. The net income increased by 37.2% when compared to the same quarter one year prior, rising from $6.18 million to $8.49 million.
- JOHNSON OUTDOORS INC has improved earnings per share by 35.9% 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 two years. We feel that this trend should continue. During the past fiscal year, JOHNSON OUTDOORS INC turned its bottom line around by earning $0.66 versus -$1.06 in the prior year. This year, the market expects an improvement in earnings ($1.36 versus $0.66).
- Powered by its strong earnings growth of 35.93% and other important driving factors, this stock has surged by 33.43% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, JOUT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The current debt-to-equity ratio, 0.52, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.11, which illustrates the ability to avoid short-term cash problems.
- JOUT's revenue growth has slightly outpaced the industry average of 6.8%. Since the same quarter one year prior, revenues rose by 14.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
Johnson Outdoors, Inc., together with its subsidiaries, engages in the design, manufacture, and marketing of outdoor recreation products worldwide. The company has a P/E ratio of 16.3, below the average consumer durables industry P/E ratio of 16.6 and below the S&P 500 P/E ratio of 16.7. Johnson Outdoors has a market cap of $138.6 million and is part of the
industry. Shares are up 32.5% year to date as of the previous trading day's close.
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