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 largely solid financial position with reasonable debt levels by most measures, revenue growth, good cash flow from operations, attractive valuation levels and compelling growth in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 2.85 is very high and demonstrates very strong liquidity.
- SYKE's revenue growth has slightly outpaced the industry average of 0.4%. Since the same quarter one year prior, revenues slightly increased by 2.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Commercial Services & Supplies industry average. The net income increased by 32.7% when compared to the same quarter one year prior, rising from $13.65 million to $18.12 million.
- Net operating cash flow has significantly increased by 53.67% to $45.85 million when compared to the same quarter last year. In addition, SYKES ENTERPRISES INC has also vastly surpassed the industry average cash flow growth rate of -0.82%.
Sykes Enterprises, Incorporated and its subsidiaries provide outsourced customer contact management solutions and services in the business process outsourcing arena. The company has a P/E ratio of 15.3, below the average computer software & services industry P/E ratio of 31 and below the S&P 500 P/E ratio of 17.7. Sykes has a market cap of $786.8 million and is part of the
industry. Shares are up 12.2% year to date as of the close of trading on Thursday.
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-- Written by a member of TheStreet RatingsStaff