NEW YORK ( TheStreet) -- Cybex International (Nasdaq: CYBI) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, revenue growth and solid stock price performance. However, as a counter to these strengths, we find that the company has not been very careful in the management of its balance sheet. Highlights from the ratings report include:
- Compared to other companies in the Leisure Equipment & Products industry and the overall market, CYBEX INTERNATIONAL INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- CYBI's revenue growth has slightly outpaced the industry average of 1.1%. Since the same quarter one year prior, revenues slightly increased by 7.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 160.77% and other important driving factors, this stock has surged by 152.02% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- 36.90% is the gross profit margin for CYBEX INTERNATIONAL INC which we consider to be strong. Regardless of CYBI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CYBI's net profit margin of 80.60% significantly outperformed against the industry.
- The debt-to-equity ratio is somewhat low, currently at 0.73, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.84 is somewhat weak and could be cause for future problems.
-- Written by a member of TheStreet RatingsStaff