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 impressive record of earnings per share growth, compelling growth in net income, revenue growth, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- SAIA INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SAIA INC increased its bottom line by earning $0.70 versus $0.11 in the prior year. This year, the market expects an improvement in earnings ($1.08 versus $0.70).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Road & Rail industry. The net income increased by 250.8% when compared to the same quarter one year prior, rising from $0.71 million to $2.47 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 15.7%. Since the same quarter one year prior, revenues rose by 12.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has significantly increased by 510.46% to $23.56 million when compared to the same quarter last year. In addition, SAIA INC has also vastly surpassed the industry average cash flow growth rate of -6.64%.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, the stock's 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 the other strengths this company displays justify these higher price levels.
Saia, Inc., an asset-based trucking company, provides transportation and supply chain solutions primarily to the retail, chemical, and manufacturing industries in the United States. The company has a P/E ratio of 23.9, below the average transportation industry P/E ratio of 24.4 and above the S&P 500 P/E ratio of 17.7. Saia has a market cap of $229.7 million and is part of the
industry. Shares are up 32.6% year to date as of the close of trading on Monday.
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-- Written by a member of TheStreet RatingsStaff