NEW YORK ( TheStreet) -- Bolt Technology Corporation (Nasdaq: BOLT) 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, growth in earnings per share and increase in net income. 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 came in higher than the industry average of 15.5%. Since the same quarter one year prior, revenues rose by 44.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- BOLT has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.73, which clearly demonstrates the ability to cover short-term cash needs.
- BOLT TECHNOLOGY CORP has improved earnings per share by 15.0% 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 year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, BOLT TECHNOLOGY CORP increased its bottom line by earning $0.65 versus $0.58 in the prior year. For the next year, the market is expecting a contraction of 10.8% in earnings ($0.58 versus $0.65).
- The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Energy Equipment & Services industry average. The net income increased by 15.8% when compared to the same quarter one year prior, going from $1.68 million to $1.95 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Energy Equipment & Services industry and the overall market, BOLT TECHNOLOGY CORP's return on equity is below that of both the industry average and the S&P 500.