NEW YORK ( TheStreet) -- Standard Parking Corporation (Nasdaq: STAN) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, increase in net income, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had generally poor debt management on most measures that we evaluated. Highlights from the ratings report include:
- STAN's revenue growth has slightly outpaced the industry average of 0.3%. Since the same quarter one year prior, revenues slightly increased by 1.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- Net operating cash flow has significantly increased by 5079.55% to $11.65 million when compared to the same quarter last year. In addition, STANDARD PARKING CORP has also vastly surpassed the industry average cash flow growth rate of -2.06%.
- STANDARD PARKING CORP reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, STANDARD PARKING CORP increased its bottom line by earning $1.05 versus $0.90 in the prior year. This year, the market expects an improvement in earnings ($1.16 versus $1.05).
- The net income growth from the same quarter one year ago has exceeded that of the Commercial Services & Supplies industry average, but is less than that of the S&P 500. The net income increased by 0.8% when compared to the same quarter one year prior, going from $4.51 million to $4.54 million.
- After a year of stock price fluctuations, the net result is that STAN's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.