NEW YORK ( TheStreet) -- FLIR Systems (Nasdaq: FLIR) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and growth in earnings per share. 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 Electronic Equipment, Instruments & Components industry average, but is less than that of the S&P 500. The net income increased by 9.0% when compared to the same quarter one year prior, going from $69.82 million to $76.13 million.
- FLIR's debt-to-equity ratio is very low at 0.16 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 3.31, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for FLIR SYSTEMS INC is rather high; currently it is at 59.50%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 18.80% significantly outperformed against the industry average.
- Net operating cash flow has significantly increased by 156.46% to $116.20 million when compared to the same quarter last year. In addition, FLIR SYSTEMS INC has also vastly surpassed the industry average cash flow growth rate of -40.32%.
- FLIR SYSTEMS INC has improved earnings per share by 11.4% 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, FLIR SYSTEMS INC reported lower earnings of $1.39 versus $1.55 in the prior year. This year, the market expects an improvement in earnings ($1.65 versus $1.39).
-- Written by a member of TheStreet RatingsStaff