NEW YORK ( TheStreet) -- Move (Nasdaq: MOVE) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins, notable return on equity and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Highlights from the ratings report include:
- MOVE INC 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 two years. We feel that this trend should continue. During the past fiscal year, MOVE INC turned its bottom line around by earning $0.09 versus -$0.56 in the prior year. This year, the market expects an improvement in earnings ($0.34 versus $0.09).
- MOVE 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 the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.31, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has significantly increased by 489.72% to $4.10 million when compared to the same quarter last year. In addition, MOVE INC has also vastly surpassed the industry average cash flow growth rate of 15.23%.
- The gross profit margin for MOVE INC is currently very high, coming in at 85.10%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, MOVE's net profit margin of 1.70% significantly trails the industry average.
- MOVE, with its decline in revenue, underperformed when compared the industry average of 23.1%. Since the same quarter one year prior, revenues slightly dropped by 2.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
-- Written by a member of TheStreet RatingsStaff