NEW YORK ( TheStreet) -- Haverty Furniture Companies (NYSE: HVT) 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, compelling growth in net income, attractive valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • HVT's revenue growth has slightly outpaced the industry average of 0.6%. Since the same quarter one year prior, revenues slightly increased by 3.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The gross profit margin for HAVERTY FURNITURE is rather high; currently it is at 55.10%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 10.10% is above that of the industry average.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 207.8% when compared to the same quarter one year prior, rising from $5.51 million to $16.96 million.
  • Although HVT's debt-to-equity ratio of 0.05 is very low, it is currently higher than that of the industry average. 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.

Haverty Furniture Companies, Inc., together with its subsidiaries, operates as a specialty retailer of residential furniture and accessories in the United States. The company has a P/E ratio of 17.6, below the average retail industry P/E ratio of 65.7 and equal to the S&P 500 P/E ratio of 17.7. Haverty Furniture Companies has a market cap of $233.4 million and is part of the services sector and retail industry. Shares are up 12.4% year to date as of the close of trading on Friday.

You can view the full Haverty Furniture Companies Ratings Report or get investment ideas from our investment research center.
-- Written by a member of TheStreet RatingsStaff