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) -- International Speedway Corporation (Nasdaq: ISCA) 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, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
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- The revenue growth came in higher than the industry average of 0.8%. Since the same quarter one year prior, revenues rose by 29.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- ISCA's debt-to-equity ratio is very low at 0.24 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.17, which illustrates the ability to avoid short-term cash problems.
- Compared to where it was 12 months ago, this stock has enjoyed a nice rise of 25.32% which was in line with the performance of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ISCA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- INTL SPEEDWAY CORP has improved earnings per share by 20.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, INTL SPEEDWAY CORP increased its bottom line by earning $1.46 versus $1.14 in the prior year. This year, the market expects an improvement in earnings ($1.55 versus $1.46).
- 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 Hotels, Restaurants & Leisure industry average. The net income increased by 15.7% when compared to the same quarter one year prior, going from $11.87 million to $13.74 million.
-- Written by a member of TheStreet Ratings Staff