NEW YORK ( TheStreet) -- Immucor (Nasdaq: BLUD) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Highlights from the ratings report include:
- Net operating cash flow has increased to $25.94 million or 21.33% when compared to the same quarter last year. In addition, IMMUCOR INC has also vastly surpassed the industry average cash flow growth rate of -34.80%.
- The gross profit margin for IMMUCOR INC is currently very high, coming in at 75.00%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 27.20% is above that of the industry average.
- IMMUCOR INC has improved earnings per share by 14.3% 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, IMMUCOR INC increased its bottom line by earning $1.16 versus $1.06 in the prior year. This year, the market expects an improvement in earnings ($1.19 versus $1.16).
- BLUD 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. Along with this, the company maintains a quick ratio of 8.62, which clearly demonstrates the ability to cover short-term cash needs.
- BLUD's revenue growth has slightly outpaced the industry average of 0.4%. Since the same quarter one year prior, revenues slightly increased by 3.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.