NEW YORK ( TheStreet) -- Lifetime Brands (Nasdaq: LCUT) 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, compelling growth in net income, notable return on equity, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 18.7%. Since the same quarter one year prior, revenues slightly increased by 4.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Household Durables industry and the overall market, LIFETIME BRANDS INC's return on equity exceeds that of both the industry average and the S&P 500.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Household Durables industry. The net income increased by 310.3% when compared to the same quarter one year prior, rising from -$0.98 million to $2.06 million.
  • 39.90% is the gross profit margin for LIFETIME BRANDS INC which we consider to be strong. Regardless of LCUT's high profit margin, it has managed to decrease from the same period last year.

Lifetime Brands Inc. engages in the design, marketing, and distribution of kitchenware, tabletop, and home decor products under various company-owned and licensed brand names in North America. The company has a P/E ratio of 7.9, above the average consumer durables industry P/E ratio of 6.9 and below the S&P 500 P/E ratio of 17.7. Lifetime has a market cap of $124.3 million and is part of the consumer goods sector and consumer durables industry. Shares are down 26.2% year to date as of the close of trading on Tuesday.

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