NEW YORK ( TheStreet) -- ASM International NV ADR (Nasdaq: ASMI) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, reasonable valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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- Compared to its closing price of one year ago, ASMI's share price has jumped by 27.33%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ASMI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- 38.30% is the gross profit margin for ASM INTERNATIONAL NV which we consider to be strong. Regardless of ASMI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ASMI's net profit margin of 4.80% is significantly lower than the same period one year prior.
- The revenue fell significantly faster than the industry average of 13.7%. Since the same quarter one year prior, revenues fell by 34.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Despite currently having a low debt-to-equity ratio of 0.34, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.32 is sturdy.
-- Written by a member of TheStreet Ratings Staff