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 compelling growth in net income, robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
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 44.3% when compared to the same quarter one year prior, rising from $11.93 million to $17.22 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 43.0%. Since the same quarter one year prior, revenues rose by 36.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- RSTI's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, RSTI has a quick ratio of 1.91, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has significantly increased by 837.98% to $17.83 million when compared to the same quarter last year. In addition, ROFIN SINAR TECHNOLOGIES INC has also vastly surpassed the industry average cash flow growth rate of -65.60%.
- 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 Electronic Equipment, Instruments & Components industry and the overall market on the basis of return on equity, ROFIN SINAR TECHNOLOGIES INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
Rofin-Sinar Technologies Inc., together with its subsidiaries, engages in the design, development, engineering, manufacturing, and marketing of laser-based products worldwide. The company offers laser macro products to machine tool and automotive markets for cutting and welding of metals. The company has a P/E ratio of 13.5, equal to the average electronics industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Rofin-Sinar has a market cap of $792.9 million and is part of the
industry. Shares are up 21.8% year to date as of the close of trading on Thursday.
You can view the full
or get investment ideas from our