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"We rate VISTAPRINT NV (VPRT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- VISTAPRINT NV reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, VISTAPRINT NV increased its bottom line by earning $1.26 versus $0.85 in the prior year. This year, the market expects an improvement in earnings ($3.77 versus $1.26).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 5651.0% when compared to the same quarter one year prior, rising from $0.41 million to $23.69 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 29.4%. Since the same quarter one year prior, revenues rose by 21.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 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. Compared to other companies in the Internet Software & Services industry and the overall market, VISTAPRINT NV's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has significantly increased by 42880.48% to $52.62 million when compared to the same quarter last year. In addition, VISTAPRINT NV has also vastly surpassed the industry average cash flow growth rate of 26.90%.
- You can view the full analysis from the report here: VPRT Ratings Report