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, reasonable valuation levels, solid stock price performance, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 8.9%. Since the same quarter one year prior, revenues rose by 21.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- This stock has managed to rise its share value by 112.74% over the past twelve months. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- Net operating cash flow has increased to $30.56 million or 46.80% when compared to the same quarter last year. Despite an increase in cash flow of 46.80%, SUSSER HOLDINGS CORP is still growing at a significantly lower rate than the industry average of 143.41%.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Food & Staples Retailing industry and the overall market, SUSSER HOLDINGS CORP's return on equity is below that of both the industry average and the S&P 500.
Susser Holdings Corporation, together with its subsidiaries, operates convenience stores in Texas, New Mexico, and Oklahoma. The company operates in two segments, Retail and Wholesale. The company has a P/E ratio of 13.7, equal to the average retail industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Susser has a market cap of $759.3 million and is part of the
industry. Shares are up 60.2% year to date as of the close of trading on Thursday.
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-- Written by a member of TheStreet Ratings Staff
TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.