NEW YORK ( TheStreet) -- Standard Parking Corporation (Nasdaq: STAN) 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, impressive record of earnings per share growth, good cash flow from operations, compelling growth in net income and notable return on equity. We feel these strengths outweigh the fact that the company has had generally poor debt management on most measures that we evaluated.

Highlights from the ratings report include:
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Commercial Services & Supplies industry and the overall market, STANDARD PARKING CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The net income growth from the same quarter one year ago has exceeded that of the Commercial Services & Supplies industry average, but is less than that of the S&P 500. The net income increased by 32.8% when compared to the same quarter one year prior, rising from $2.85 million to $3.78 million.
  • Net operating cash flow has significantly increased by 285.15% to $6.85 million when compared to the same quarter last year. In addition, STANDARD PARKING CORP has also vastly surpassed the industry average cash flow growth rate of -6.05%.
  • STANDARD PARKING CORP has improved earnings per share by 27.8% 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, STANDARD PARKING CORP increased its bottom line by earning $1.05 versus $0.90 in the prior year. This year, the market expects an improvement in earnings ($1.16 versus $1.05).
  • STAN's revenue growth has slightly outpaced the industry average of 3.1%. Since the same quarter one year prior, revenues slightly increased by 1.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.

Standard Parking Corporation provides outsourced parking facility management services in the United States and Canada. It offers on-site parking management and ground transportation services. The company has a P/E ratio of 15.3, below the average diversified services industry P/E ratio of 16 and below the S&P 500 P/E ratio of 16.9. Standard Parking has a market cap of $268 million and is part of the services sector and diversified services industry. Shares are down 12.2% year to date as of the previous trading day's close.

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