NEW YORK ( TheStreet) -- Maiden Holdings (Nasdaq: MHLD) 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 attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins. Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Insurance industry average. The net income increased by 42.5% when compared to the same quarter one year prior, rising from $13.57 million to $19.34 million.
- MAIDEN HOLDINGS LTD has improved earnings per share by 42.1% 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, MAIDEN HOLDINGS LTD increased its bottom line by earning $0.98 versus $0.87 in the prior year. This year, the market expects an improvement in earnings ($1.10 versus $0.98).
- Although MHLD's debt-to-equity ratio of 0.28 is very low, it is currently higher than that of the industry average.
- The revenue growth greatly exceeded the industry average of 100.0%. Since the same quarter one year prior, revenues rose by 31.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.