NEW YORK ( TheStreet) -- Breeze-Eastern Corporation (AMEX: BZC) 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, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, compelling growth in net income and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Highlights from the ratings report include:
- 45.20% is the gross profit margin for BREEZE-EASTERN CORP which we consider to be strong. It has increased significantly from the same period last year. Along with this, the net profit margin of 10.50% is above that of the industry average.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Aerospace & Defense industry. The net income increased by 131.9% when compared to the same quarter one year prior, rising from -$8.91 million to $2.84 million.
- Powered by its strong earnings growth of 131.57% and other important driving factors, this stock has surged by 45.39% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BZC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The current debt-to-equity ratio, 0.34, is low and is below the industry average, implying that there has been successful management of debt levels.
- The revenue growth greatly exceeded the industry average of 3.6%. Since the same quarter one year prior, revenues rose by 48.9%. Growth in the company's revenue appears to have helped boost the earnings per share.