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, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- SYA's revenue growth has slightly outpaced the industry average of 5.0%. Since the same quarter one year prior, revenues rose by 13.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- SYA's debt-to-equity ratio is very low at 0.14 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 19.3% when compared to the same quarter one year prior, going from $62.20 million to $74.20 million.
- Net operating cash flow has slightly increased to $264.50 million or 1.53% when compared to the same quarter last year. Despite an increase in cash flow, SYMETRA FINANCIAL CORP's average is still marginally south of the industry average growth rate of 10.57%.
Symetra Financial Corporation, through its subsidiaries, provides group and individual insurance products and retirement products in the United States and the District of Columbia. The company has a P/E ratio of 7.9, above the average insurance industry P/E ratio of 7.7 and below the S&P 500 P/E ratio of 17.7. Symetra Financial has a market cap of $1.32 billion and is part of the
industry. Shares are up 22.6% year to date as of the close of trading on Tuesday.
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-- Written by a member of TheStreet RatingsStaff