NEW YORK ( TheStreet) -- H.B. Fuller Company (NYSE: FUL) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Chemicals industry average. The net income increased by 22.4% when compared to the same quarter one year prior, going from $18.98 million to $23.22 million.
- FUL's revenue growth trails the industry average of 25.5%. Since the same quarter one year prior, revenues rose by 14.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The current debt-to-equity ratio, 0.32, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.48, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has significantly increased by 157.61% to $28.16 million when compared to the same quarter last year. In addition, FULLER (H. B.) CO has also vastly surpassed the industry average cash flow growth rate of 3.35%.