NEW YORK ( TheStreet) -- Triangle Capital Corp (NYSE: TCAP) 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, solid stock price performance, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 197.7% when compared to the same quarter one year prior, rising from $4.15 million to $12.35 million.
  • The gross profit margin for TRIANGLE CAPITAL CORP is currently very high, coming in at 80.80%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 99.40% significantly outperformed against the industry average.
  • Powered by its strong earnings growth of 108.57% and other important driving factors, this stock has surged by 38.03% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • The debt-to-equity ratio is somewhat low, currently at 0.86, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
  • TCAP's very impressive revenue growth greatly exceeded the industry average of 23.7%. Since the same quarter one year prior, revenues leaped by 66.0%. Growth in the company's revenue appears to have helped boost the earnings per share.

Triangle Capital Corporation is a private equity and venture capital firm specializing in buyouts, change of control transactions, acquisitions, growth financing, and recapitalizations in lower middle market companies. The company has a P/E ratio of 10.9, above the average financial services industry P/E ratio of 7.9 and below the S&P 500 P/E ratio of 16.2. Triangle has a market cap of $349.1 million and is part of the financial sector and financial services industry. Shares are down 1.1% year to date as of the previous trading day's close.

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