NEW YORK ( TheStreet) -- Exide Technologies (Nasdaq: XIDE) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including generally poor debt management, poor profit margins and a generally disappointing performance in the stock itself.
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- XIDE's revenue growth has slightly outpaced the industry average of 4.0%. Since the same quarter one year prior, revenues slightly increased by 1.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Auto Components industry. The net income increased by 80.3% when compared to the same quarter one year prior, rising from -$13.68 million to -$2.70 million.
- Net operating cash flow has significantly increased by 510.98% to $93.46 million when compared to the same quarter last year. Despite an increase in cash flow of 510.98%, EXIDE TECHNOLOGIES is still growing at a significantly lower rate than the industry average of 4258.11%.
- Currently the debt-to-equity ratio of 1.93 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with the unfavorable debt-to-equity ratio, XIDE maintains a poor quick ratio of 0.95, which illustrates the inability to avoid short-term cash problems.
- The gross profit margin for EXIDE TECHNOLOGIES is rather low; currently it is at 18.30%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.30% trails that of the industry average.
-- Written by a member of TheStreet Ratings Staff