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) -- Iamgold (NYSE: IAG) 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, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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- The revenue growth greatly exceeded the industry average of 14.4%. Since the same quarter one year prior, revenues rose by 18.8%. 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.
- IAG has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, IAG has a quick ratio of 1.83, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has significantly increased by 15243.67% to $52.70 million when compared to the same quarter last year. In addition, IAMGOLD CORP has also vastly surpassed the industry average cash flow growth rate of -26.34%.
- 50.00% is the gross profit margin for IAMGOLD CORP which we consider to be strong. Regardless of IAG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 12.90% trails the industry average.
-- Written by a member of TheStreet Ratings Staff