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) -- Joy Global (NYSE: JOY) 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, compelling growth in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures 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 1.0%. Since the same quarter one year prior, revenues rose by 19.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Machinery industry average. The net income increased by 23.3% when compared to the same quarter one year prior, going from $172.35 million to $212.56 million.
- Net operating cash flow has increased to $205.59 million or 27.69% when compared to the same quarter last year. In addition, JOY GLOBAL INC has also vastly surpassed the industry average cash flow growth rate of -53.70%.
- The current debt-to-equity ratio, 0.53, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.84 is somewhat weak and could be cause for future problems.
- 35.30% is the gross profit margin for JOY GLOBAL INC which we consider to be strong. Regardless of JOY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, JOY's net profit margin of 13.32% compares favorably to the industry average.
-- Written by a member of TheStreet Ratings Staff