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) -- PerkinElmer (NYSE: PKI) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, increase in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
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- Compared to where it was trading one year ago, PKI is up 43.88% to its most recent closing price of 30.36. Looking ahead, although the push and pull of a bull or bear market could certainly alter the outcome, our view is that this stock's positive fundamentals give it good potential for further appreciation.
- PKI's revenue growth has slightly outpaced the industry average of 5.3%. Since the same quarter one year prior, revenues slightly increased by 9.7%. 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 greatly outperformed compared to the Life Sciences Tools & Services industry average. The net income increased by 13.0% when compared to the same quarter one year prior, going from $29.76 million to $33.63 million.
- Net operating cash flow has increased to $76.39 million or 47.18% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 20.64%.
- The gross profit margin for PERKINELMER INC is rather high; currently it is at 52.90%. 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.
-- Written by a member of TheStreet Ratings Staff