NEW YORK ( TheStreet) -- Intersil Corporation (Nasdaq: ISIL) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- ISIL's debt-to-equity ratio is very low at 0.19 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 2.86, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for INTERSIL CORP is rather high; currently it is at 59.80%. Regardless of ISIL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 14.50% trails the industry average.
- The revenue fell significantly faster than the industry average of 23.5%. Since the same quarter one year prior, revenues fell by 14.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, INTERSIL CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.