NEW YORK ( TheStreet) -- Alexco Resource (AMEX: AXU) 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, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Highlights from the ratings report include:
- AXU's very impressive revenue growth greatly exceeded the industry average of 4.6%. Since the same quarter one year prior, revenues leaped by 1246.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- AXU has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.07, which clearly demonstrates the ability to cover short-term cash needs.
- ALEXCO RESOURCE CORP 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, ALEXCO RESOURCE CORP turned its bottom line around by earning $0.06 versus -$0.11 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 977.7% when compared to the same quarter one year prior, rising from -$0.35 million to $3.07 million.
- Net operating cash flow has significantly increased by 290.72% to $3.95 million when compared to the same quarter last year. In addition, ALEXCO RESOURCE CORP has also vastly surpassed the industry average cash flow growth rate of -51.56%.
-- Written by a member of TheStreet RatingsStaff