NEW YORK ( TheStreet) -- Universal Forest Products (Nasdaq: UFPI) 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, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, increase in net income and growth in earnings per share. 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 2.8%. Since the same quarter one year prior, revenues rose by 18.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- UFPI's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Building Products industry. The net income increased by 213.2% when compared to the same quarter one year prior, rising from -$3.67 million to $4.16 million.
- Net operating cash flow has significantly increased by 59.20% to -$44.65 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 16.66%.
- UNIVERSAL FOREST PRODS 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, UNIVERSAL FOREST PRODS INC reported lower earnings of $0.23 versus $0.89 in the prior year. This year, the market expects an improvement in earnings ($1.00 versus $0.23).
-- Written by a member of TheStreet RatingsStaff