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) -- Universal Insurance Holdings (AMEX: UVE) 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, attractive valuation levels and expanding profit margins. 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 21.6%. Since the same quarter one year prior, revenues rose by 49.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- UVE's debt-to-equity ratio is very low at 0.30 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
- The gross profit margin for UNIVERSAL INSURANCE HLDGS is rather high; currently it is at 51.30%. It has increased significantly from the same period last year. Along with this, the net profit margin of 11.10% is above that of the industry average.
- Net operating cash flow has significantly increased by 133.38% to $13.11 million when compared to the same quarter last year. In addition, UNIVERSAL INSURANCE HLDGS has also vastly surpassed the industry average cash flow growth rate of 10.86%.
-- Written by a member of TheStreet Ratings Staff