NEW YORK ( TheStreet) -- Great Panther Silver (AMEX: GPL) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, robust revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • GREAT PANTHER SILVER LTD 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. During the past fiscal year, GREAT PANTHER SILVER LTD turned its bottom line around by earning $0.04 versus -$0.01 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 172.8% when compared to the same quarter one year prior, rising from $1.25 million to $3.42 million.
  • GPL's revenue growth trails the industry average of 72.6%. Since the same quarter one year prior, revenues rose by 45.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • GPL's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 10.29, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has significantly increased by 335.35% to $4.53 million when compared to the same quarter last year. In addition, GREAT PANTHER SILVER LTD has also vastly surpassed the industry average cash flow growth rate of 72.24%.

Great Panther Silver Limited, together with its subsidiaries, engages in the acquisition, exploration, and development of precious and base metal properties in Mexico. The company primarily produces silver. It also produces gold, lead, and zinc properties. The company has a P/E ratio of 32, above the average metals & mining industry P/E ratio of 24.2 and above the S&P 500 P/E ratio of 17.7. Great Panther has a market cap of $302.5 million and is part of the basic materials sector and metals & mining industry. Shares are unchanged year to date as of the close of trading on Tuesday.

You can view the full Great Panther Ratings Report or get investment ideas from our investment research center.
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