NEW YORK ( TheStreet) -- FSI International (Nasdaq: FSII) has been upgraded by TheStreet Ratings from sell to hold. 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 and attractive valuation levels. However, as a counter to these strengths, we find that the stock has experienced relatively poor performance when compared with the S&P 500 during the past year.

Highlights from the ratings report include:
  • In its most recent trading session, FSII has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • 44.10% is the gross profit margin for FSI INTL INC which we consider to be strong. Regardless of FSII's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, FSII's net profit margin of 16.00% is significantly lower than the same period one year prior.
  • 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 Semiconductors & Semiconductor Equipment industry and the overall market on the basis of return on equity, FSI INTL INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • FSII has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, FSII has a quick ratio of 2.33, which demonstrates the ability of the company to cover short-term liquidity needs.
  • FSII's very impressive revenue growth greatly exceeded the industry average of 6.5%. Since the same quarter one year prior, revenues leaped by 62.5%. Growth in the company's revenue appears to have helped boost the earnings per share.

FSI International, Inc. designs, manufactures, markets, and supports equipment used in the fabrication of microelectronics, such as advanced semiconductor devices. The company has a P/E ratio of 10.8, equal to the average electronics industry P/E ratio and below the S&P 500 P/E ratio of 16.1. FSI International has a market cap of $137.6 million and is part of the technology sector and electronics industry. Shares are down 18.8% year to date as of the close of trading on Tuesday.

You can view the full FSI International Ratings Report or get investment ideas from our investment research center.
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