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 robust revenue growth, notable return on equity, compelling growth in net income, impressive record of earnings per share growth and expanding profit margins. 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:
- NOAH's very impressive revenue growth greatly exceeded the industry average of 8.7%. Since the same quarter one year prior, revenues leaped by 61.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Capital Markets industry and the overall market, NOAH HOLDINGS LTD -ADR's return on equity exceeds that of both the industry average and the S&P 500.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 85.3% when compared to the same quarter one year prior, rising from $7.55 million to $13.99 million.
- NOAH HOLDINGS LTD -ADR reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, NOAH HOLDINGS LTD -ADR's EPS of $0.42 remained unchanged from the prior years' EPS of $0.42. This year, the market expects an improvement in earnings ($0.94 versus $0.42).
- The gross profit margin for NOAH HOLDINGS LTD -ADR is currently very high, coming in at 78.47%. Regardless of NOAH's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, NOAH's net profit margin of 33.73% significantly outperformed against the industry.
Noah Holdings Limited, through its subsidiaries, operates as a wealth management service provider with focus on distributing wealth management products in the People's Republic of China. The company has a P/E ratio of 49.3, above the S&P 500 P/E ratio of 17.7. Noah has a market cap of $1.11 billion and is part of the financial sector and financial services industry. Shares are up 245.4% year to date as of the close of trading on Friday.
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