NEW YORK ( TheStreet) -- Breeze-Eastern Corporation (AMEX: BZC) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 0.7%. Since the same quarter one year prior, revenues rose by 18.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • BZC's debt-to-equity ratio is very low at 0.30 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.26, which illustrates the ability to avoid short-term cash problems.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Aerospace & Defense industry. The net income increased by 73.4% when compared to the same quarter one year prior, rising from $0.64 million to $1.12 million.
  • 46.40% is the gross profit margin for BREEZE-EASTERN CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 6.20% trails the industry average.

Breeze-Eastern Corporation designs, develops, manufactures, sells, and services engineered mission equipment for specialty aerospace and defense applications. The company has a P/E ratio of 14.7, equal to the average aerospace/defense industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Breeze-Eastern has a market cap of $80.5 million and is part of the industrial goods sector and aerospace/defense industry. Shares are up 19.7% year to date as of the close of trading on Tuesday.

You can view the full Breeze-Eastern Ratings Report or get investment ideas from our investment research center.
null

If you liked this article you might like

TransDigm Buys Breeze-Eastern as Aerospace Consolidation Continues

TransDigm to Acquire Breeze-Eastern in a $206M Transaction

3 Aerospace/Defense Stocks Moving The Industry Upward

3 Stocks Moving The Aerospace/Defense Industry Upward

3 Stocks Pushing The Industrial Goods Sector Lower