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 robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, solid stock price performance and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- WWAY's revenue growth has slightly outpaced the industry average of 23.6%. Since the same quarter one year prior, revenues rose by 33.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- WESTWAY GROUP INC 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 year. We feel that this trend should continue. During the past fiscal year, WESTWAY GROUP INC continued to lose money by earning -$0.04 versus -$0.36 in the prior year. This year, the market expects an improvement in earnings ($0.18 versus -$0.04).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food Products industry. The net income increased by 240.1% when compared to the same quarter one year prior, rising from $0.89 million to $3.03 million.
- Powered by its strong earnings growth of 300.00% and other important driving factors, this stock has surged by 56.08% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- Net operating cash flow has significantly increased by 190.35% to $9.03 million when compared to the same quarter last year. Despite an increase in cash flow of 190.35%, WESTWAY GROUP INC is still growing at a significantly lower rate than the industry average of 343.01%.
Westway Group, Inc., together with its subsidiaries, provides bulk liquid storage and related value-added services to manufacturers and consumers of agricultural and industrial liquids worldwide. The company has a P/E ratio of 64, below the average diversified services industry P/E ratio of 75 and above the S&P 500 P/E ratio of 17.7. Westway Group has a market cap of $63 million and is part of the
industry. Shares are up 56.1% year to date as of the close of trading on Thursday.
You can view the full
or get investment ideas from our