NEW YORK ( TheStreet) -- National Technical Systems (Nasdaq: NTSC) 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, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 9.3%. Since the same quarter one year prior, revenues slightly increased by 4.9%. 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 significantly increased by 178.87% to $4.98 million when compared to the same quarter last year. In addition, NATIONAL TECHNICAL SYS INC has also vastly surpassed the industry average cash flow growth rate of -1.53%.
- NTSC's debt-to-equity ratio of 0.79 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that NTSC's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.94 is high and demonstrates strong liquidity.
- NATIONAL TECHNICAL SYS INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, NATIONAL TECHNICAL SYS INC increased its bottom line by earning $0.53 versus $0.34 in the prior year.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Professional Services industry. The net income has significantly decreased by 116.5% when compared to the same quarter one year ago, falling from $1.13 million to -$0.19 million.
-- Written by a member of TheStreet RatingsStaff