NEW YORK ( TheStreet) -- Handy & Harman (Nasdaq: HNH) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and robust revenue growth. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow.

Highlights from the ratings report include:
  • Net operating cash flow has significantly decreased to -$18.82 million or 272.67% 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 HANDY & HARMAN LTD is currently lower than what is desirable, coming in at 28.10%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 3.10% significantly trails the industry average.
  • Despite the fact that HNH's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.65 is low and demonstrates weak liquidity.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 275.7% when compared to the same quarter one year prior, rising from -$2.74 million to $4.82 million.
  • HANDY & HARMAN LTD has improved earnings per share by 47.4% 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. During the past fiscal year, HANDY & HARMAN LTD turned its bottom line around by earning $0.37 versus -$1.40 in the prior year.

Handy & Harman Ltd. engages in precious metals, tubing, and engineered materials businesses in the United States and internationally. The company has a P/E ratio of 28.9, above the average industrial industry P/E ratio of 12.9 and above the S&P 500 P/E ratio of 17.7. Handy & Harman has a market cap of $168 million and is part of the industrial goods sector and industrial industry. Shares are unchanged year to date as of the close of trading on Tuesday.

You can view the full Handy & Harman Ratings Report or get investment ideas from our investment research center.
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