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) -- Sinclair Broadcast Group (Nasdaq: SBGI) 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, solid stock price performance, good cash flow from operations, impressive record of earnings per share growth and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
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- The revenue growth came in higher than the industry average of 15.9%. Since the same quarter one year prior, revenues rose by 43.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- Net operating cash flow has increased to $83.03 million or 37.09% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 6.53%.
- SINCLAIR BROADCAST GP has improved earnings per share by 37.5% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, SINCLAIR BROADCAST GP's EPS of $0.94 remained unchanged from the prior years' EPS of $0.94. This year, the market expects an improvement in earnings ($1.65 versus $0.94).
- The gross profit margin for SINCLAIR BROADCAST GP is rather high; currently it is at 63.10%. 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 10.10% trails the industry average.
-- Written by a member of TheStreet Ratings Staff