NEW YORK ( TheStreet) -- Entegris (Nasdaq: ENTG) 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, impressive record of earnings per share growth and compelling growth in net income. 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 Semiconductors & Semiconductor Equipment industry. The net income increased by 76.3% when compared to the same quarter one year prior, rising from $16.55 million to $29.18 million.
- ENTEGRIS INC 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 two years. We feel that this trend should continue. During the past fiscal year, ENTEGRIS INC turned its bottom line around by earning $0.63 versus -$0.53 in the prior year. This year, the market expects an improvement in earnings ($0.90 versus $0.63).
- Powered by its strong earnings growth of 83.33% and other important driving factors, this stock has surged by 85.68% 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, ENTG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- ENTG has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign.
- The revenue growth came in higher than the industry average of 0.7%. Since the same quarter one year prior, revenues rose by 26.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.