NEW YORK ( TheStreet) -- LML Payment Systems (Nasdaq: LMLP) 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, compelling growth in net income and attractive valuation levels. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. 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 IT Services industry. The net income increased by 4028.6% when compared to the same quarter one year prior, rising from -$0.19 million to $7.27 million.
- LML PAYMENT SYSTEMS INC has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, LML PAYMENT SYSTEMS INC turned its bottom line around by earning $0.37 versus -$0.01 in the prior year.
- This stock has managed to rise its share value by 106.66% over the past twelve months. Regarding the stock's future course, although almost any stock can fall in a broad market decline, LMLP should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- LMLP's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, LMLP has a quick ratio of 1.83, which demonstrates the ability of the company to cover short-term liquidity needs.
- LMLP's very impressive revenue growth greatly exceeded the industry average of 14.7%. Since the same quarter one year prior, revenues leaped by 599.4%. Growth in the company's revenue appears to have helped boost the earnings per share.