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) -- Evercore Partners (NYSE: EVR) 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, good cash flow from operations, increase in net income 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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- The revenue growth greatly exceeded the industry average of 26.8%. Since the same quarter one year prior, revenues rose by 19.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 250.9% when compared to the same quarter one year prior, rising from $2.26 million to $7.93 million.
- Net operating cash flow has significantly increased by 102.15% to $92.11 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 65.37%.
- EVERCORE PARTNERS 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, EVERCORE PARTNERS INC reported lower earnings of $0.28 versus $0.41 in the prior year. This year, the market expects an improvement in earnings ($1.29 versus $0.28).
- The gross profit margin for EVERCORE PARTNERS INC is rather low; currently it is at 16.60%. Regardless of EVR's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.50% trails the industry average.
-- Written by a member of TheStreet Ratings Staff