NEW YORK ( TheStreet) -- John B. Sanfilippo & Son (Nasdaq: JBSS) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, attractive valuation levels, good cash flow from operations, impressive record of earnings per share growth and notable return on equity. 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 net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food Products industry. The net income increased by 80.8% when compared to the same quarter one year prior, rising from $5.17 million to $9.35 million.
- Net operating cash flow has significantly increased by 581.03% to $17.33 million when compared to the same quarter last year. Despite an increase in cash flow of 581.03%, SANFILIPPO JOHN B&SON is still growing at a significantly lower rate than the industry average of 2660.03%.
- JBSS, with its decline in revenue, underperformed when compared the industry average of 25.4%. Since the same quarter one year prior, revenues slightly dropped by 0.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- SANFILIPPO JOHN B&SON reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, SANFILIPPO JOHN B&SON reported lower earnings of $0.26 versus $1.34 in the prior year.