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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 increase in net income, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
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Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 214.7% when compared to the same quarter one year prior, rising from -$0.28 million to $0.32 million.
- MXWL's debt-to-equity ratio is very low at 0.07 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.
- 44.64% is the gross profit margin for MAXWELL TECHNOLOGIES INC which we consider to be strong. 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 0.69% trails the industry average.
- Powered by its strong earnings growth of 200.00% and other important driving factors, this stock has surged by 158.93% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- MAXWELL TECHNOLOGIES INC reported significant earnings per share improvement 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, MAXWELL TECHNOLOGIES INC reported lower earnings of $0.22 versus $0.25 in the prior year. This year, the market expects an improvement in earnings ($0.27 versus $0.22).
Maxwell Technologies, Inc., together with its subsidiaries, develops, manufactures, and markets energy storage and power delivery products worldwide. Maxwell has a market cap of $498.1 million and is part of the technology sector and electronics industry. Shares are up 120% year to date as of the close of trading on Friday.
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