NEW YORK ( TheStreet) -- Ballantyne of Omaha (AMEX: BTN) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive 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:
- The revenue growth came in higher than the industry average of 13.0%. Since the same quarter one year prior, revenues rose by 38.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- BTN 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. To add to this, BTN has a quick ratio of 1.61, which demonstrates the ability of the company to cover short-term liquidity needs.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Media industry and the overall market, BALLANTYNE STRONG INC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 61.3% when compared to the same quarter one year prior, rising from $1.52 million to $2.45 million.
-- Written by a member of TheStreet Ratings Staff