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) -- Breeze-Eastern Corporation (AMEX: BZC) 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 net income, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
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- The revenue growth came in higher than the industry average of 6.2%. Since the same quarter one year prior, revenues rose by 31.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- BZC 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.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Aerospace & Defense industry. The net income increased by 82.9% when compared to the same quarter one year prior, rising from $1.12 million to $2.04 million.
- 42.00% is the gross profit margin for BREEZE-EASTERN CORP which we consider to be strong. Regardless of BZC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BZC's net profit margin of 8.70% compares favorably to the industry average.
- BREEZE-EASTERN CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. 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, BREEZE-EASTERN CORP reported lower earnings of $0.39 versus $0.53 in the prior year.
-- Written by a member of TheStreet Ratings Staff