NEW YORK ( TheStreet) -- inTest Corporation (Nasdaq: INTT) 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, attractive valuation levels, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- INTT 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 4.00, which clearly demonstrates the ability to cover short-term cash needs.
- 48.30% is the gross profit margin for INTEST CORP which we consider to be strong. Regardless of INTT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, INTT's net profit margin of 7.60% is significantly lower than the same period one year prior.
- INTEST CORP's earnings per share declined by 38.5% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, INTEST CORP increased its bottom line by earning $0.96 versus $0.72 in the prior year.
- INTT, with its decline in revenue, underperformed when compared the industry average of 25.9%. Since the same quarter one year prior, revenues slightly dropped by 0.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
-- Written by a member of TheStreet RatingsStaff