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) -- MSCI (NYSE: MSCI) 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, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
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- MSCI's revenue growth has slightly outpaced the industry average of 0.6%. Since the same quarter one year prior, revenues slightly increased by 4.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.59, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.13, which illustrates the ability to avoid short-term cash problems.
- The gross profit margin for MSCI INC is currently very high, coming in at 71.60%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 20.50% is above that of the industry average.
- Net operating cash flow has slightly increased to $97.60 million or 3.07% when compared to the same quarter last year. In addition, MSCI INC has also vastly surpassed the industry average cash flow growth rate of -90.75%.
- MSCI INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MSCI INC increased its bottom line by earning $1.40 versus $0.81 in the prior year. This year, the market expects an improvement in earnings ($1.98 versus $1.40).
-- Written by a member of TheStreet Ratings Staff