Editor's Note: 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 NEW YORK ( TheStreet) -- Wacoal Holdings Corporatiom (Nasdaq: WACLY) 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, attractive valuation levels, good cash flow from operations, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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- WACLY's revenue growth trails the industry average of 17.6%. Since the same quarter one year prior, revenues slightly increased by 2.1%. 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 732.13% to $30.89 million when compared to the same quarter last year. In addition, WACOAL HOLDINGS CORP has also vastly surpassed the industry average cash flow growth rate of 29.18%.
- The gross profit margin for WACOAL HOLDINGS CORP is rather high; currently it is at 56.70%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 6.30% trails the industry average.
- WACOAL HOLDINGS CORP reported flat earnings per share in the most recent quarter. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, WACOAL HOLDINGS CORP increased its bottom line by earning $3.18 versus $1.19 in the prior year.
-- Written by a member of TheStreet Ratings Staff