NEW YORK ( TheStreet) -- Bottomline Technologies (Nasdaq: EPAY) 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, solid stock price performance, attractive valuation levels, compelling growth in net income and expanding profit margins. 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 revenue growth came in higher than the industry average of 2.1%. Since the same quarter one year prior, revenues rose by 30.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 2075.00% and other important driving factors, this stock has surged by 52.92% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 2564.7% when compared to the same quarter one year prior, rising from $1.13 million to $30.06 million.
  • 45.60% is the gross profit margin for BOTTOMLINE TECHNOLOGIES INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, EPAY's net profit margin of 55.40% significantly outperformed against the industry.

Bottomline Technologies (de), Inc. markets and provides electronic payment, invoice, and document automation solutions to corporations, financial institutions, and banks worldwide. The company has a P/E ratio of 20.6, above the average computer software & services industry P/E ratio of 20.4 and above the S&P 500 P/E ratio of 17.7. Bottomline has a market cap of $741.8 million and is part of the technology sector and computer software & services industry. Shares are up 0.4% year to date as of the close of trading on Thursday.

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