NEW YORK ( TheStreet) -- Edgewater Technology (Nasdaq: EDGW) 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, solid stock price performance, compelling growth in net income and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 4.5%. Since the same quarter one year prior, revenues rose by 17.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- EDGW'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. To add to this, EDGW has a quick ratio of 1.80, which demonstrates the ability of the company to cover short-term liquidity needs.
- Powered by its strong earnings growth of 106.98% and other important driving factors, this stock has surged by 38.72% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, EDGW should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the IT Services industry. The net income increased by 106.8% when compared to the same quarter one year prior, rising from -$22.69 million to $1.55 million.
- Net operating cash flow has significantly increased by 212.62% to $4.19 million when compared to the same quarter last year. In addition, EDGEWATER TECHNOLOGY INC has also vastly surpassed the industry average cash flow growth rate of 8.87%.