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 compelling growth in net income, robust revenue growth, good cash flow from operations, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 132.9% when compared to the same quarter one year prior, rising from $5.69 million to $13.25 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 27.9%. Since the same quarter one year prior, revenues rose by 22.2%. 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.
- Net operating cash flow has significantly increased by 80.63% to $60.26 million when compared to the same quarter last year. In addition, TRIMAS CORP has also vastly surpassed the industry average cash flow growth rate of -25.48%.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- TRIMAS CORP's earnings per share declined by 9.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TRIMAS CORP increased its bottom line by earning $1.46 versus $1.13 in the prior year. This year, the market expects an improvement in earnings ($1.80 versus $1.46).
TriMas Corporation designs, manufactures, and distributes various products for commercial, industrial, and consumer markets worldwide. The company has a P/E ratio of 14.9, above the average industrial industry P/E ratio of 13.1 and below the S&P 500 P/E ratio of 17.7. TriMas has a market cap of $685 million and is part of the
industry. Shares are up 40.2% year to date as of the close of trading on Tuesday.
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-- Written by a member of TheStreet RatingsStaff