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) -- Streamline Health Solutions (Nasdaq: STRM) 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, reasonable valuation levels, expanding profit margins 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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- STRM's very impressive revenue growth greatly exceeded the industry average of 12.6%. Since the same quarter one year prior, revenues leaped by 51.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 400.00% and other important driving factors, this stock has surged by 254.96% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, STRM should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The gross profit margin for STREAMLINE HEALTH SOLUTIONS is currently very high, coming in at 70.60%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 36.72% significantly outperformed against the industry average.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Technology industry. The net income increased by 710.8% when compared to the same quarter one year prior, rising from $0.30 million to $2.40 million.
-- Written by a member of TheStreet Ratings Staff