NEW YORK ( TheStreet) -- Systemax (NYSE: SYX) 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, increase in net income, attractive valuation levels, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • SYX's debt-to-equity ratio is very low at 0.06 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.84 is somewhat weak and could be cause for future problems.
  • Net operating cash flow has significantly increased by 147.55% to $9.73 million when compared to the same quarter last year. In addition, SYSTEMAX INC has also vastly surpassed the industry average cash flow growth rate of -34.54%.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the Specialty Retail industry average, but is less than that of the S&P 500. The net income increased by 15.4% when compared to the same quarter one year prior, going from $11.75 million to $13.57 million.
  • The revenue growth came in higher than the industry average of 12.7%. Since the same quarter one year prior, revenues slightly increased by 1.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.

Systemax Inc. The company has a P/E ratio of 11.1, equal to the average computer software & services industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Systemax has a market cap of $483.3 million and is part of the technology sector and computer software & services industry. Shares are down 7.4% year to date as of the close of trading on Wednesday.

You can view the full Systemax Ratings Report or get investment ideas from our investment research center.
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Systemax Inc. Stock Downgraded (SYX)