NEW YORK ( TheStreet) -- Cameco (NYSE: CCJ) 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, expanding profit margins, good cash flow from operations and increase in net income. 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 revenue growth came in higher than the industry average of 24.8%. Since the same quarter one year prior, revenues rose by 45.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- CCJ's debt-to-equity ratio is very low at 0.21 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 2.54, which clearly demonstrates the ability to cover short-term cash needs.
- 47.60% is the gross profit margin for CAMECO 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 27.10% significantly outperformed against the industry average.
- Net operating cash flow has significantly increased by 112.29% to $254.81 million when compared to the same quarter last year. In addition, CAMECO CORP has also vastly surpassed the industry average cash flow growth rate of -16.91%.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Oil, Gas & Consumable Fuels industry average. The net income increased by 28.2% when compared to the same quarter one year prior, rising from $206.54 million to $264.81 million.
-- Written by a member of TheStreet RatingsStaff