NEW YORK ( TheStreet) -- Mantech International (Nasdaq: MANT) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- MANT's debt-to-equity ratio is very low at 0.18 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, MANT has a quick ratio of 1.69, which demonstrates the ability of the company to cover short-term liquidity needs.
- MANT, with its decline in revenue, slightly underperformed the industry average of 0.3%. Since the same quarter one year prior, revenues slightly dropped by 2.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- MANTECH INTL CORP's earnings per share declined by 10.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, MANTECH INTL CORP increased its bottom line by earning $3.63 versus $3.43 in the prior year. For the next year, the market is expecting a contraction of 2.8% in earnings ($3.53 versus $3.63).
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, MANT has underperformed the S&P 500 Index, declining 20.47% from its price level of one year ago. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
-- Written by a member of TheStreet RatingsStaff