NEW YORK ( TheStreet) -- Corporate Executive Board Company (NYSE: EXBD) 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, solid stock price performance, notable return on equity, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 4.3%. Since the same quarter one year prior, revenues slightly increased by 9.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. 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.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Professional Services industry and the overall market, CORPORATE EXECUTIVE BRD CO's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The gross profit margin for CORPORATE EXECUTIVE BRD CO is rather high; currently it is at 65.90%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 11.40% is above that of the industry average.
- Net operating cash flow has significantly increased by 142.08% to $3.78 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 95.89%.