NEW YORK ( TheStreet) -- Met-Pro Corporation (NYSE: MPR) 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, revenue growth, largely solid financial position with reasonable debt levels by most measures 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:
- MET-PRO CORP has improved earnings per share by 40.0% 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. We feel that this trend should continue. During the past fiscal year, MET-PRO CORP increased its bottom line by earning $0.43 versus $0.31 in the prior year. This year, the market expects an improvement in earnings ($0.49 versus $0.43).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Machinery industry average. The net income increased by 46.7% when compared to the same quarter one year prior, rising from $1.42 million to $2.08 million.
- MPR's revenue growth trails the industry average of 30.7%. Since the same quarter one year prior, revenues rose by 18.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- MPR's debt-to-equity ratio is very low at 0.04 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 3.12, which clearly demonstrates the ability to cover short-term cash needs.
- 38.90% is the gross profit margin for MET-PRO CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 8.20% is above that of the industry average.