Global Sources Ltd. Stock Upgraded (GSOL)

NEW YORK ( TheStreet) -- Global Sources (Nasdaq: GSOL) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 13.4%. Since the same quarter one year prior, revenues slightly increased by 3.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • GSOL 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. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.75 is somewhat weak and could be cause for future problems.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Media industry and the overall market, GLOBAL SOURCES LTD's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • GLOBAL SOURCES LTD's earnings per share declined by 10.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, GLOBAL SOURCES LTD increased its bottom line by earning $0.82 versus $0.65 in the prior year. For the next year, the market is expecting a contraction of 2.4% in earnings ($0.80 versus $0.82).

Global Sources Ltd. operates as a business-to-business media company primarily in greater China. It provides sourcing information to volume buyers and integrated marketing services to suppliers. The company offers trade information using online media, print media, and face-to-face events. The company has a P/E ratio of 8.6, below the average internet industry P/E ratio of nine and below the S&P 500 P/E ratio of 17.7. Global Sources has a market cap of $247.4 million and is part of the technology sector and internet industry. Shares are up 50.1% year to date as of the close of trading on Tuesday.

You can view the full Global Sources 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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Global Sources Ltd. Stock Upgraded (GSOL)

Global Sources Ltd. Stock Upgraded (GSOL)

Global Sources Ltd. Stock Downgraded (GSOL)

Global Sources Ltd. Stock Downgraded (GSOL)