NEW YORK ( TheStreet) -- Symmetricom (Nasdaq: SYMM) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, impressive record of earnings per share growth and expanding profit margins. 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 greatly exceeded the industry average of 0.1%. Since the same quarter one year prior, revenues rose by 39.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- SYMM 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 2.75, which clearly demonstrates the ability to cover short-term cash needs.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Communications Equipment industry. The net income increased by 169.4% when compared to the same quarter one year prior, rising from -$3.53 million to $2.45 million.
- SYMMETRICOM INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SYMMETRICOM INC reported lower earnings of $0.03 versus $0.05 in the prior year. This year, the market expects an improvement in earnings ($0.44 versus $0.03).
- 44.30% is the gross profit margin for SYMMETRICOM INC which we consider to be strong. Regardless of SYMM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SYMM's net profit margin of 4.20% is significantly lower than the same period one year prior.