Amerigon Inc. Stock Upgraded (THRM)

NEW YORK ( TheStreet) -- Amerigon (Nasdaq: THRM) 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, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • THRM's very impressive revenue growth greatly exceeded the industry average of 3.3%. Since the same quarter one year prior, revenues leaped by 76.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.32, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.46, which illustrates the ability to avoid short-term cash problems.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Auto Components industry. The net income increased by 315.8% when compared to the same quarter one year prior, rising from $1.34 million to $5.58 million.
  • Net operating cash flow has significantly increased by 143.56% to $10.82 million when compared to the same quarter last year. In addition, AMERIGON INC has also vastly surpassed the industry average cash flow growth rate of 17.13%.
  • AMERIGON INC reported significant earnings per share improvement 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, AMERIGON INC reported lower earnings of $0.08 versus $0.44 in the prior year. This year, the market expects an improvement in earnings ($0.59 versus $0.08).

Gentherm Incorporated offers design, development, and manufacture of heating, cooling, and ventilating devices worldwide. The company has a P/E ratio of 27.5, equal to the average automotive industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Amerigon has a market cap of $342 million and is part of the consumer goods sector and automotive industry. Shares are down 18.9% year to date as of the close of trading on Friday.

You can view the full Amerigon 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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