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NEW YORK (TheStreet) -- Norsat International (NSAT) 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:
"We rate NORSAT INTL INC (NSAT) a BUY. This is driven by a number of 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 compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Communications Equipment industry. The net income increased by 41.8% when compared to the same quarter one year prior, rising from $0.68 million to $0.97 million.
- NSAT's debt-to-equity ratio is very low at 0.10 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 1.46, which illustrates the ability to avoid short-term cash problems.
- 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 Communications Equipment industry and the overall market, NORSAT INTL INC's return on equity exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has significantly increased by 496.51% to $1.71 million when compared to the same quarter last year. In addition, NORSAT INTL INC has also vastly surpassed the industry average cash flow growth rate of -23.40%.
- You can view the full analysis from the report here: NSAT Ratings Report