NEW YORK ( TheStreet) -- Great Panther Silver (AMEX: GPL) 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, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, solid stock price performance and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • GREAT PANTHER SILVER LTD 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, GREAT PANTHER SILVER LTD turned its bottom line around by earning $0.04 versus -$0.01 in the prior year.
  • GPL's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 9.35, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for GREAT PANTHER SILVER LTD is rather high; currently it is at 51.00%. 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 29.20% trails the industry average.
  • Powered by its strong earnings growth of 100.00% and other important driving factors, this stock has surged by 254.22% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • The revenue fell significantly faster than the industry average of 52.1%. Since the same quarter one year prior, revenues slightly dropped by 8.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

Great Panther Silver Limited, together with its subsidiaries, engages in the acquisition, exploration, and development of precious and base metal properties in Mexico. The company primarily produces silver. It also produces gold, lead, and zinc properties. The company has a P/E ratio of 58.3, above the average metals & mining industry P/E ratio of 42.1 and above the S&P 500 P/E ratio of 17.7. Great Panther has a market cap of $469.8 million and is part of the basic materials sector and metals & mining industry. Shares are unchanged year to date as of the close of trading on Tuesday.

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