NEW YORK ( TheStreet) -- BTU International (Nasdaq: BTUI) 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, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Highlights from the ratings report include:
- 39.50% is the gross profit margin for BTU INTERNATIONAL INC which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, BTUI's net profit margin of 8.20% significantly trails the industry average.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 157.3% when compared to the same quarter one year prior, rising from -$3.91 million to $2.24 million.
- BTU INTERNATIONAL 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 two years. We feel that this trend should continue. During the past fiscal year, BTU INTERNATIONAL INC turned its bottom line around by earning $0.24 versus -$1.58 in the prior year. This year, the market expects an improvement in earnings ($0.48 versus $0.24).
- Although BTUI's debt-to-equity ratio of 0.22 is very low, it is currently higher than that of the industry average. To add to this, BTUI has a quick ratio of 2.09, which demonstrates the ability of the company to cover short-term liquidity needs.
- BTUI's very impressive revenue growth greatly exceeded the industry average of 6.5%. Since the same quarter one year prior, revenues leaped by 126.9%. Growth in the company's revenue appears to have helped boost the earnings per share.