NEW YORK ( TheStreet) -- CECO Environmental (Nasdaq: CECE) 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, compelling growth in net income and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins. Highlights from the ratings report include:
- The gross profit margin for CECO ENVIRONMENTAL CORP is rather low; currently it is at 23.30%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 3.50% trails that of the industry average.
- Powered by its strong earnings growth of 700.00% and other important driving factors, this stock has surged by 27.36% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Services & Supplies industry. The net income increased by 1196.9% when compared to the same quarter one year prior, rising from $0.10 million to $1.26 million.
- CECO ENVIRONMENTAL CORP reported significant earnings per share improvement 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, CECO ENVIRONMENTAL CORP turned its bottom line around by earning $0.16 versus -$1.03 in the prior year. This year, the market expects an improvement in earnings ($0.28 versus $0.16).
- CECE's revenue growth has slightly outpaced the industry average of 3.9%. Since the same quarter one year prior, revenues slightly increased by 2.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.