NEW YORK ( TheStreet) -- Century Casinos (Nasdaq: CNTY) 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, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. 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:
- CNTY's revenue growth has slightly outpaced the industry average of 10.9%. Since the same quarter one year prior, revenues rose by 13.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- CNTY's debt-to-equity ratio is very low at 0.08 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, CNTY has a quick ratio of 1.97, which demonstrates the ability of the company to cover short-term liquidity needs.
- CENTURY CASINOS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CENTURY CASINOS INC turned its bottom line around by earning $0.04 versus -$0.56 in the prior year. This year, the market expects an improvement in earnings ($0.12 versus $0.04).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 344.7% when compared to the same quarter one year prior, rising from $0.32 million to $1.42 million.