NEW YORK ( TheStreet) -- Nutraceutical International Corporation (Nasdaq: NUTR) 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, attractive valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share. Highlights from the ratings report include:
- NUTR's revenue growth has slightly outpaced the industry average of 0.1%. Since the same quarter one year prior, revenues slightly increased by 3.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has increased to $7.59 million or 20.47% when compared to the same quarter last year. In addition, NUTRACEUTICAL INTL CORP has also modestly surpassed the industry average cash flow growth rate of 13.18%.
- NUTR's debt-to-equity ratio is very low at 0.26 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.94 is somewhat weak and could be cause for future problems.
- The gross profit margin for NUTRACEUTICAL INTL CORP is rather high; currently it is at 53.30%. Regardless of NUTR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 7.30% trails the industry average.
-- Written by a member of TheStreet RatingsStaff