NEW YORK ( TheStreet) -- Global Industries (Nasdaq: GLBL) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:
  • The revenue growth significantly trails the industry average of 48.2%. Since the same quarter one year prior, revenues slightly increased by 9.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to its closing price of one year ago, GLBL's share price has jumped by 44.26%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • Despite currently having a low debt-to-equity ratio of 0.43, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that GLBL's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.85 is high and demonstrates strong liquidity.
  • The gross profit margin for GLOBAL INDUSTRIES LTD is currently extremely low, coming in at 2.40%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -20.50% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$32.69 million or 169.46% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

Global Industries, Ltd., together with its subsidiaries, provides construction and subsea services to the offshore oil and gas industry in the North America, Latin America, and the Asia Pacific/the Middle East regions. Global has a market cap of $918.3 million and is part of the basic materials sector and energy industry. Shares are up 14.3% year to date as of the close of trading on Monday.

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