NEW YORK ( TheStreet) -- Taseko Mines Ltd NPL (AMEX: TGB) 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, growth in earnings per share, increase in net income, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Highlights from the ratings report include:
- TGB's very impressive revenue growth greatly exceeded the industry average of 11.7%. Since the same quarter one year prior, revenues leaped by 124.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- TASEKO MINES LTD reported significant earnings per share improvement 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 two years. During the past fiscal year, TASEKO MINES LTD increased its bottom line by earning $0.77 versus $0.06 in the prior year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 2079.1% when compared to the same quarter one year prior, rising from $1.38 million to $30.03 million.
- 35.50% is the gross profit margin for TASEKO MINES LTD which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, TGB's net profit margin of 35.60% significantly outperformed against the industry.
- Despite currently having a low debt-to-equity ratio of 0.48, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 7.15 is very high and demonstrates very strong liquidity.
-- Written by a member of TheStreet RatingsStaff