NEW YORK ( TheStreet) -- Full Circle Capital (Nasdaq: FULL) has been upgraded by TheStreet Ratings from sell to hold. 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 and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow. Highlights from the ratings report include:
- FULL's very impressive revenue growth greatly exceeded the industry average of 22.8%. Since the same quarter one year prior, revenues leaped by 85.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- FULL's debt-to-equity ratio is very low at 0.28 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
- When compared to other companies in the Capital Markets industry and the overall market, FULL CIRCLE CAPITAL CORP's return on equity is below that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to $1.33 million or 83.10% when compared to the same quarter last year. Despite a decrease in cash flow of 83.10%, FULL CIRCLE CAPITAL CORP is still significantly exceeding the industry average of -416.95%.
- FULL has underperformed the S&P 500 Index, declining 6.29% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
-- Written by a member of TheStreet Ratings Staff