NEW YORK ( TheStreet) -- Fushi Copperweld (Nasdaq: FSIN) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electrical Equipment industry. The net income increased by 330.6% when compared to the same quarter one year prior, rising from -$2.44 million to $5.64 million.
- FSIN's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 11.84, which clearly demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has significantly increased by 52.47% to $31.37 million when compared to the same quarter last year. In addition, FUSHI COPPERWELD INC has also vastly surpassed the industry average cash flow growth rate of -12.71%.
- FUSHI COPPERWELD INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, FUSHI COPPERWELD INC reported lower earnings of $0.84 versus $0.86 in the prior year. This year, the market expects an improvement in earnings ($1.10 versus $0.84).
-- Written by a member of TheStreet RatingsStaff