NEW YORK ( TheStreet) -- Furmanite Corporation (NYSE: FRM) 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, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • Net operating cash flow has significantly increased by 98.71% to -$0.03 million when compared to the same quarter last year. Despite an increase in cash flow of 98.71%, FURMANITE CORP is still growing at a significantly lower rate than the industry average of 249.39%.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Construction & Engineering industry. The net income increased by 929.7% when compared to the same quarter one year prior, rising from $0.39 million to $4.03 million.
  • FURMANITE CORP 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 year. We feel that this trend should continue. During the past fiscal year, FURMANITE CORP turned its bottom line around by earning $0.26 versus -$0.08 in the prior year. This year, the market expects an improvement in earnings ($0.47 versus $0.26).
  • Powered by its strong earnings growth of 1000.00% and other important driving factors, this stock has surged by 75.33% 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, FRM should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • FRM's revenue growth has slightly outpaced the industry average of 9.2%. Since the same quarter one year prior, revenues slightly increased by 10.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.

Furmanite Corporation, through its subsidiaries, provides technical services in Europe, North America, Latin America, the Middle East, Africa, and the Asia Pacific. The company has a P/E ratio of 22.2, equal to the average diversified services industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Furmanite has a market cap of $295.6 million and is part of the services sector and diversified services industry. Shares are up 15.2% year to date as of the close of trading on Wednesday.

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