NEW YORK ( TheStreet) -- Bristow Group (NYSE: BRS) 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, increase in net income, good cash flow from operations, 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 somewhat disappointing return on equity.
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- BRS's revenue growth has slightly outpaced the industry average of 12.8%. Since the same quarter one year prior, revenues rose by 12.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Energy Equipment & Services industry average. The net income increased by 12.4% when compared to the same quarter one year prior, going from $21.05 million to $23.66 million.
- Net operating cash flow has slightly increased to $55.41 million or 4.77% when compared to the same quarter last year. In addition, BRISTOW GROUP INC has also vastly surpassed the industry average cash flow growth rate of -51.22%.
- BRISTOW GROUP INC has improved earnings per share by 14.0% 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, BRISTOW GROUP INC reported lower earnings of $1.73 versus $3.60 in the prior year. This year, the market expects an improvement in earnings ($3.55 versus $1.73).
- Despite currently having a low debt-to-equity ratio of 0.48, 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 BRS's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.44 is high and demonstrates strong liquidity.
-- Written by a member of TheStreet Ratings Staff