NEW YORK ( TheStreet) -- Elecsys Corporation (Nasdaq: ESYS) 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, expanding profit margins and good cash flow from operations. 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:
  • ELECSYS CORP reported significant earnings per share improvement 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. During the past fiscal year, ELECSYS CORP turned its bottom line around by earning $0.22 versus -$0.19 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 99.1% when compared to the same quarter one year prior, rising from $0.11 million to $0.21 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 15.8%. Since the same quarter one year prior, revenues slightly increased by 9.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • 37.90% is the gross profit margin for ELECSYS CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 3.80% is above that of the industry average.
  • Net operating cash flow has increased to $0.64 million or 47.81% when compared to the same quarter last year. In addition, ELECSYS CORP has also vastly surpassed the industry average cash flow growth rate of -49.45%.

Elecsys Corporation develops and manufactures machine to machine (M2M) data acquisition, telemetry, analysis systems, and custom electronic assemblies for critical industries worldwide. The company has a P/E ratio of 18.5, above the average consumer durables industry P/E ratio of 17.7 and above the S&P 500 P/E ratio of 17.7. Elecsys has a market cap of $16.8 million and is part of the consumer goods sector and consumer durables industry. Shares are up 9.9% year to date as of the close of trading on Tuesday.

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