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 revenue growth, impressive record of earnings per share growth, compelling growth in net income, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- SHLO's revenue growth has slightly outpaced the industry average of 8.6%. Since the same quarter one year prior, revenues rose by 13.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- SHILOH INDUSTRIES 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, SHILOH INDUSTRIES INC increased its bottom line by earning $0.46 versus $0.24 in the prior year. This year, the market expects an improvement in earnings ($0.60 versus $0.46).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Auto Components industry. The net income increased by 401.6% when compared to the same quarter one year prior, rising from -$0.73 million to $2.20 million.
- Net operating cash flow has significantly increased by 94.23% to $13.48 million when compared to the same quarter last year. In addition, SHILOH INDUSTRIES INC has also vastly surpassed the industry average cash flow growth rate of -78.27%.
Shiloh Industries, Inc., together with its subsidiaries, manufactures and sells first operation blanks, engineered welded blanks, stampings, and modular assemblies for the automotive, heavy truck, and other industrial markets. The company has a P/E ratio of 20.8, above the average automotive industry P/E ratio of 18.3 and above the S&P 500 P/E ratio of 17.7. Shiloh has a market cap of $143.8 million and is part of the
industry. Shares are up 16.7% year to date as of the close of trading on Tuesday.
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-- Written by a member of TheStreet RatingsStaff