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, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- SILU's very impressive revenue growth greatly exceeded the industry average of 6.0%. Since the same quarter one year prior, revenues leaped by 99.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- SILU has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign.
- SPROTT RESOURCE LENDING CORP 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. During the past fiscal year, SPROTT RESOURCE LENDING CORP turned its bottom line around by earning $0.01 versus -$0.25 in the prior year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Diversified Financial Services industry. The net income increased by 428.6% when compared to the same quarter one year prior, rising from -$1.65 million to $5.43 million.
- The gross profit margin for SPROTT RESOURCE LENDING CORP is rather high; currently it is at 58.80%. It has increased significantly from the same period last year. Along with this, the net profit margin of 57.60% significantly outperformed against the industry average.
Sprott Resource Lending Corp., a natural resource lender, provides bridge and mezzanine financing to precious and base metal mining, exploration, and development companies, as well as to oil and gas companies and other resource related businesses worldwide. The company has a P/E ratio of 21.4, below the average real estate industry P/E ratio of 76.4 and above the S&P 500 P/E ratio of 17.7. Sprott Resource Lending Corp Class A has a market cap of $230.7 million and is part of the
industry. Shares are up 7.2% year to date as of the close of trading on Wednesday.
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-- Written by a member of TheStreet Ratings Staff