NEW YORK ( TheStreet) -- International Speedway Corporation (Nasdaq: ISCA) 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, attractive valuation levels, good cash flow from operations, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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- ISCA'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. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.39, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has significantly increased by 57.93% to $31.23 million when compared to the same quarter last year. In addition, INTL SPEEDWAY CORP has also vastly surpassed the industry average cash flow growth rate of 1.06%.
- The gross profit margin for INTL SPEEDWAY CORP is rather high; currently it is at 56.90%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 13.50% trails the industry average.
- INTL SPEEDWAY CORP's earnings per share declined by 17.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, INTL SPEEDWAY CORP increased its bottom line by earning $1.46 versus $1.14 in the prior year. This year, the market expects an improvement in earnings ($1.60 versus $1.46).
-- Written by a member of TheStreet Ratings Staff