Sypris Solutions Inc. Stock Upgraded (SYPR)

NEW YORK ( TheStreet) -- Sypris Solutions (Nasdaq: SYPR) 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, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 5.1%. Since the same quarter one year prior, revenues rose by 27.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 133.33% and other important driving factors, this stock has surged by 47.86% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SYPR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • SYPRIS SOLUTIONS 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, SYPRIS SOLUTIONS INC turned its bottom line around by earning $0.41 versus -$0.52 in the prior year. This year, the market expects an improvement in earnings ($0.75 versus $0.41).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Aerospace & Defense industry. The net income increased by 157.7% when compared to the same quarter one year prior, rising from $2.05 million to $5.29 million.

Sypris Solutions, Inc. provides outsourced services and specialty products primarily in the United States, Mexico, and Denmark. The company has a P/E ratio of 9.8, below the average electronics industry P/E ratio of 10.3 and below the S&P 500 P/E ratio of 17.7. Sypris has a market cap of $116.4 million and is part of the technology sector and electronics industry. Shares are up 50.5% year to date as of the close of trading on Thursday.

You can view the full Sypris Ratings Report or get investment ideas from our investment research center.

-- Written by a member of TheStreet Ratings Staff

TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
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