Jinpan International Ltd. Stock Upgraded (JST)

NEW YORK ( TheStreet) -- Jinpan International (Nasdaq: JST) 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, compelling growth in net income, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 4.1%. Since the same quarter one year prior, revenues rose by 49.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • JST's debt-to-equity ratio is very low at 0.22 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 1.44, which illustrates the ability to avoid short-term cash problems.
  • 39.10% is the gross profit margin for JINPAN INTERNATIONAL LTD which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.70% is above that of the industry average.
  • Net operating cash flow has significantly increased by 782.04% to $12.20 million when compared to the same quarter last year. In addition, JINPAN INTERNATIONAL LTD has also vastly surpassed the industry average cash flow growth rate of -19.37%.

Jinpan International Limited engages in the design and manufacture of cast resin transformers for voltage distribution equipment. Its cast resin transformers allow high voltage transmissions of electricity to be distributed to various locations in lower, more usable voltages. The company has a P/E ratio of 6.3, equal to the average electronics industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Jinpan International has a market cap of $151.7 million and is part of the technology sector and electronics industry. Shares are up 13.3% year to date as of the close of trading on Monday.

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