NEW YORK ( TheStreet) -- Asia Pacific Wire & Cable Corp (Nasdaq: APWC) has been upgraded by TheStreet Ratings from sell to hold. 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 and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and poor profit margins. Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Electrical Equipment industry. The net income has significantly decreased by 29.1% when compared to the same quarter one year ago, falling from $4.31 million to $3.06 million.
- The gross profit margin for ASIA PACIFIC WIRE&CABLE CORP is currently extremely low, coming in at 14.50%. Regardless of APWC'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 2.10% trails the industry average.
- ASIA PACIFIC WIRE&CABLE CORP's earnings per share declined by 29.0% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, ASIA PACIFIC WIRE&CABLE CORP increased its bottom line by earning $1.02 versus $0.74 in the prior year.
- The current debt-to-equity ratio, 0.46, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.47, which illustrates the ability to avoid short-term cash problems.
- The revenue growth came in higher than the industry average of 6.1%. Since the same quarter one year prior, revenues rose by 31.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.