Iteris Inc. Stock Upgraded (ITI)

NEW YORK ( TheStreet) -- Iteris (AMEX: ITI) 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, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, solid stock price performance and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 9.4%. Since the same quarter one year prior, revenues rose by 17.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • ITI 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.
  • ITERIS INC has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, ITERIS INC turned its bottom line around by earning $0.03 versus -$0.15 in the prior year. This year, the market expects an improvement in earnings ($0.08 versus $0.03).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 596.9% when compared to the same quarter one year prior, rising from $0.10 million to $0.68 million.
  • This stock has managed to rise its share value by 18.46% over the past twelve months. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

Iteris, Inc. provides intelligent transportation systems (ITS) solutions to the traffic management market in North America, Europe, Asia, and South America. It operates in two segments, Roadway Sensors and Transportation Systems. The company has a P/E ratio of 16.4, below the average telecommunications industry P/E ratio of 21.1 and below the S&P 500 P/E ratio of 17.7. Iteris has a market cap of $50.3 million and is part of the technology sector and telecommunications industry. Shares are up 18.5% year to date as of the close of trading on Monday.

You can view the full Iteris 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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