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NEW YORK (TheStreet) -- Wesco Aircraft Holdings (WAIR) - Get Wesco Aircraft Holdings, Inc Report has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
TheStreet Ratings team rates WESCO AIRCRAFT HOLDINGS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate WESCO AIRCRAFT HOLDINGS INC (WAIR) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- WAIR's very impressive revenue growth greatly exceeded the industry average of 33.1%. Since the same quarter one year prior, revenues leaped by 66.3%. 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 143.44% to $11.32 million when compared to the same quarter last year. In addition, WESCO AIRCRAFT HOLDINGS INC has also vastly surpassed the industry average cash flow growth rate of 29.02%.
- WESCO AIRCRAFT HOLDINGS INC's earnings per share declined by 20.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, WESCO AIRCRAFT HOLDINGS INC reported lower earnings of $1.04 versus $1.09 in the prior year. This year, the market expects an improvement in earnings ($1.29 versus $1.04).
- Looking at the price performance of WAIR's shares over the past 12 months, there is not much good news to report: the stock is down 30.79%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Looking ahead, the stock's sharp decline over the past year may have been what was needed in order to bring its value into alignment with its fundamentals and others in its industry.
- The debt-to-equity ratio of 1.09 is relatively high when compared with the industry average, suggesting a need for better debt level management. Regardless of the company's weak debt-to-equity ratio, WAIR has managed to keep a strong quick ratio of 1.69, which demonstrates the ability to cover short-term cash needs.
- You can view the full analysis from the report here: WAIR Ratings Report