NEW YORK ( TheStreet) -- Magal Security Systems (Nasdaq: MAGS) has been upgraded by TheStreet Ratings from sell to hold. 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 and solid stock price performance. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good. Highlights from the ratings report include:
- MAGS's very impressive revenue growth greatly exceeded the industry average of 44.8%. Since the same quarter one year prior, revenues leaped by 107.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- MAGS's debt-to-equity ratio is very low at 0.10 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, MAGS has a quick ratio of 1.53, which demonstrates the ability of the company to cover short-term liquidity needs.
- MAGAL SECURITY SYSTEMS reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, MAGAL SECURITY SYSTEMS reported poor results of -$0.60 versus -$0.51 in the prior 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. When compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, MAGAL SECURITY SYSTEMS's return on equity is below that of both the industry average and the S&P 500.