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NEW YORK (TheStreet) -- Lifetime Brands (LCUT) - Get Report has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
TheStreet Ratings team rates LIFETIME BRANDS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate LIFETIME BRANDS INC (LCUT) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 0.0%. Since the same quarter one year prior, revenues rose by 15.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.74, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.34, which illustrates the ability to avoid short-term cash problems.
- 38.60% is the gross profit margin for LIFETIME BRANDS INC which we consider to be strong. Regardless of LCUT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LCUT's net profit margin of 4.87% compares favorably to the industry average.
- LIFETIME BRANDS INC's earnings per share declined by 8.3% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, LIFETIME BRANDS INC reported lower earnings of $0.08 versus $0.71 in the prior year. This year, the market expects an improvement in earnings ($1.22 versus $0.08).
- The change in net income from the same quarter one year ago has significantly exceeded that of the Household Durables industry average, but is less than that of the S&P 500. The net income has decreased by 1.4% when compared to the same quarter one year ago, dropping from $9.39 million to $9.26 million.
- You can view the full analysis from the report here: LCUT Ratings Report