NEW YORK ( TheStreet) -- NCR Corporation (NYSE: NCR) 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, robust revenue growth, good cash flow from operations, solid stock price performance 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 company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Computers & Peripherals industry average. The net income increased by 123.1% when compared to the same quarter one year prior, rising from $13.00 million to $29.00 million.
- The revenue growth significantly trails the industry average of 72.8%. Since the same quarter one year prior, revenues rose by 17.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has significantly increased by 86.04% to $80.00 million when compared to the same quarter last year. In addition, NCR CORP has also modestly surpassed the industry average cash flow growth rate of 80.64%.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- NCR CORP 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, NCR CORP reported lower earnings of $0.31 versus $0.68 in the prior year. This year, the market expects an improvement in earnings ($2.45 versus $0.31).
-- Written by a member of TheStreet RatingsStaff