NEW YORK ( TheStreet) -- CyberOptics Corp (Nasdaq: CYBE) has been upgraded by TheStreet Ratings from hold to buy. 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, revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • 44.30% is the gross profit margin for CYBEROPTICS CORP which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, CYBE's net profit margin of 8.30% significantly trails the industry average.
  • CYBE 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. Along with this, the company maintains a quick ratio of 3.18, which clearly demonstrates the ability to cover short-term cash needs.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.0%. Since the same quarter one year prior, revenues slightly increased by 2.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • 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 44.3% when compared to the same quarter one year prior, rising from $0.97 million to $1.40 million.
  • CYBEROPTICS CORP has improved earnings per share by 42.9% 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, CYBEROPTICS CORP turned its bottom line around by earning $0.46 versus -$1.00 in the prior year. This year, the market expects an improvement in earnings ($0.65 versus $0.46).

CyberOptics Corporation supplies optical process control sensors and inspection systems to control the manufacturing process and ensure the quality of electronic circuit boards worldwide. The company has a P/E ratio of 15.2, below the average electronics industry P/E ratio of 16.9 and below the S&P 500 P/E ratio of 17.7. CyberOptics has a market cap of $62.8 million and is part of the technology sector and electronics industry. Shares are up 10.4% year to date as of the close of trading on Monday.

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