NEW YORK ( TheStreet) -- Ivanhoe Mines (NYSE: IVN) 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 solid stock price performance. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins.

Highlights from the ratings report include:
  • Net operating cash flow has significantly decreased to -$152.51 million or 164.25% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for IVANHOE MINES LTD is currently extremely low, coming in at 5.70%. It has decreased significantly from the same period last year. Despite the weak results of the gross profit margin, the net profit margin of 89.60% has significantly outperformed against the industry average.
  • IVN's debt-to-equity ratio is very low at 0.17 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.36, which illustrates the ability to avoid short-term cash problems.
  • IVN's very impressive revenue growth greatly exceeded the industry average of 32.8%. Since the same quarter one year prior, revenues leaped by 317.6%. Growth in the company's revenue appears to have helped boost the earnings per share.

Ivanhoe Mines Ltd., through its subsidiaries, operates as a mineral exploration and development company. The company's principal mineral resource property is the Oyu Tolgoi copper and gold mine development project located in southern Mongolia. Ivanhoe Mines has a market cap of $14.5 billion and is part of the basic materials sector and metals & mining industry. Shares are up 19.8% year to date as of the close of trading on Thursday.

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