NEW YORK ( TheStreet) -- Casual Male Retail Group (Nasdaq: CMRG) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, revenue growth, attractive valuation levels, solid stock price performance and impressive record of earnings per share growth. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Highlights from the ratings report include:
- CMRG's revenue growth has slightly outpaced the industry average of 6.2%. Since the same quarter one year prior, revenues slightly increased by 3.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 48.88% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CMRG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- CASUAL MALE RETAIL GRP INC has improved earnings per share by 16.7% 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, CASUAL MALE RETAIL GRP INC increased its bottom line by earning $0.33 versus $0.15 in the prior year. This year, the market expects an improvement in earnings ($0.42 versus $0.33).
- 48.30% is the gross profit margin for CASUAL MALE RETAIL GRP INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 6.50% trails the industry average.