NEW YORK ( TheStreet) -- Seacor Holdings (NYSE: CKH) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
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- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Energy Equipment & Services industry. The net income increased by 226.7% when compared to the same quarter one year prior, rising from $11.17 million to $36.49 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 15.0%. Since the same quarter one year prior, revenues rose by 13.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Despite currently having a low debt-to-equity ratio of 0.55, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that CKH's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.09 is high and demonstrates strong liquidity.
- SEACOR HOLDINGS INC has improved earnings per share by 41.4% 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, SEACOR HOLDINGS INC reported lower earnings of $1.57 versus $11.50 in the prior year. This year, the market expects an improvement in earnings ($6.40 versus $1.57).
- The gross profit margin for SEACOR HOLDINGS INC is rather low; currently it is at 22.90%. Regardless of CKH's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 7.30% trails the industry average.
-- Written by a member of TheStreet Ratings Staff