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) -- InterXion Holding N.V (NYSE: INXN) 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, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
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- The revenue growth greatly exceeded the industry average of 11.8%. Since the same quarter one year prior, revenues rose by 31.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.70, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
- INTERXION HOLDING NV has improved earnings per share by 33.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, INTERXION HOLDING NV increased its bottom line by earning $0.49 versus $0.20 in the prior year. This year, the market expects an improvement in earnings ($0.52 versus $0.49).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the IT Services industry. The net income increased by 34.8% when compared to the same quarter one year prior, rising from $8.41 million to $11.33 million.
- Net operating cash flow has significantly increased by 55.28% to $20.97 million when compared to the same quarter last year. In addition, INTERXION HOLDING NV has also vastly surpassed the industry average cash flow growth rate of -88.62%.
-- Written by a member of TheStreet Ratings Staff