NEW YORK ( TheStreet) -- Claude Resources (AMEX: CGR) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall. Highlights from the ratings report include:
- CLAUDE RESOURCES INC has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, CLAUDE RESOURCES INC turned its bottom line around by earning $0.03 versus -$0.07 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 Metals & Mining industry. The net income increased by 1694.1% when compared to the same quarter one year prior, rising from $0.29 million to $5.19 million.
- The gross profit margin for CLAUDE RESOURCES INC is rather high; currently it is at 51.40%. 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 28.40% trails the industry average.
- This stock has managed to decline in share value by 2.68% over the past twelve months. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
- Net operating cash flow has significantly decreased to $0.59 million or 89.24% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.