Hooker Furniture Corporation Stock Upgraded (HOFT)

NEW YORK ( TheStreet) -- Hooker Furniture Corporation (Nasdaq: HOFT) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • HOOKER FURNITURE CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, HOOKER FURNITURE CORP increased its bottom line by earning $0.47 versus $0.30 in the prior year. This year, the market expects an improvement in earnings ($1.07 versus $0.47).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Household Durables industry. The net income increased by 445.1% when compared to the same quarter one year prior, rising from -$0.18 million to $0.63 million.
  • HOFT 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 4.42, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has significantly increased by 486.63% to $10.12 million when compared to the same quarter last year. In addition, HOOKER FURNITURE CORP has also vastly surpassed the industry average cash flow growth rate of -71.52%.
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Hooker Furniture Corporation, together with its subsidiaries, designs, develops, imports, and markets residential wood, metal, and upholstered furniture products in North America. The company has a P/E ratio of 35.3, above the average consumer durables industry P/E ratio of 34.1 and above the S&P 500 P/E ratio of 17.7. Hooker Furniture has a market cap of $143.7 million and is part of the consumer goods sector and consumer durables industry. Shares are up 16.1% year to date as of the close of trading on Wednesday.

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