NEW YORK ( TheStreet) -- Lakeland Industries (Nasdaq: LAKE) 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 and largely solid financial position with reasonable debt levels by most measures. 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 significantly decreased to -$6.16 million or 208.41% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The gross profit margin for LAKELAND INDUSTRIES INC is currently lower than what is desirable, coming in at 33.60%. Regardless of LAKE's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.40% trails the industry average.
- LAKELAND INDUSTRIES INC reported flat earnings per share in the most recent quarter. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, LAKELAND INDUSTRIES INC reported lower earnings of $0.17 versus $0.19 in the prior year. This year, the market expects an improvement in earnings ($0.71 versus $0.17).
- Although LAKE's debt-to-equity ratio of 0.18 is very low, it is currently higher than that of the industry average. To add to this, LAKE has a quick ratio of 1.92, which demonstrates the ability of the company to cover short-term liquidity needs.
- Despite its growing revenue, the company underperformed as compared with the industry average of 4.7%. Since the same quarter one year prior, revenues slightly increased by 0.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.