NEW YORK ( TheStreet) -- Altra Holdings Incorporated (Nasdaq: AIMC) 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, attractive valuation levels, good cash flow from operations, 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.
- ACTIVE STOCK TRADERS: Check out TheStreet's special offer for Real Money, headlined by Jim Cramer, now!
- AIMC's revenue growth has slightly outpaced the industry average of 17.0%. Since the same quarter one year prior, revenues rose by 20.4%. 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.
- Net operating cash flow has significantly increased by 69.01% to -$2.26 million when compared to the same quarter last year. In addition, ALTRA HOLDINGS INC has also vastly surpassed the industry average cash flow growth rate of -62.20%.
- ALTRA HOLDINGS INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. 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, ALTRA HOLDINGS INC increased its bottom line by earning $1.42 versus $0.93 in the prior year. This year, the market expects an improvement in earnings ($1.50 versus $1.42).
- Even though the current debt-to-equity ratio is 1.16, it is still below the industry average, suggesting that this level of debt is acceptable within the Machinery industry. Despite the fact that AIMC's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.96 is high and demonstrates strong liquidity.
-- Written by a member of TheStreet Ratings Staff