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, solid stock price performance, attractive valuation levels, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- TORM's revenue growth has slightly outpaced the industry average of 4.1%. Since the same quarter one year prior, revenues slightly increased by 9.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- Compared to its closing price of one year ago, TORM's share price has jumped by 48.85%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, TORM should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has exceeded that of the Chemicals industry average, but is less than that of the S&P 500. The net income increased by 11.5% when compared to the same quarter one year prior, going from $1.00 million to $1.11 million.
- TORM's debt-to-equity ratio is very low at 0.27 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.82 is somewhat weak and could be cause for future problems.
TOR Minerals International, Inc., a specialty chemical company, engages in the manufacture and marketing of mineral products. The company has a P/E ratio of 12.8, below the average chemicals industry P/E ratio of 13.3 and below the S&P 500 P/E ratio of 17.7. TOR Minerals International has a market cap of $33.1 million and is part of the
industry. Shares are up 4.6% year to date as of the close of trading on Friday.
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-- Written by a member of TheStreet RatingsStaff