NEW YORK ( TheStreet) -- AuRico Gold Inc (NYSE: AUQ) 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, compelling growth in net income, good cash flow from operations and expanding profit margins. 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:
  • AUQ's very impressive revenue growth greatly exceeded the industry average of 49.9%. Since the same quarter one year prior, revenues leaped by 97.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • AUQ's debt-to-equity ratio is very low at 0.04 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, AUQ has a quick ratio of 1.55, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 113.6% when compared to the same quarter one year prior, rising from -$180.29 million to $24.52 million.
  • Net operating cash flow has significantly increased by 298.86% to $54.41 million when compared to the same quarter last year. In addition, AURICO GOLD INC has also vastly surpassed the industry average cash flow growth rate of 55.25%.
  • The gross profit margin for AURICO GOLD INC is currently very high, coming in at 70.80%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 21.70% trails the industry average.

AuRico Gold Inc. engages in the exploration, development, and production of gold and silver mines and projects in Mexico. The company was formerly known as Gammon Gold, Inc. and changed its name to AuRico Gold Inc. in June, 2011. The company has a P/E ratio of 30.3, above the average metals & mining industry P/E ratio of 27.7 and above the S&P 500 P/E ratio of 17.7. AuRico has a market cap of $2.3 billion and is part of the basic materials sector and metals & mining industry. Shares are up 63.9% year to date as of the close of trading on Tuesday.

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

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