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) -- Shutterfly (Nasdaq: SFLY) 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, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins 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 came in higher than the industry average of 22.8%. Since the same quarter one year prior, revenues rose by 33.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- SFLY has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, SFLY has a quick ratio of 1.88, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for SHUTTERFLY INC is rather high; currently it is at 65.10%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 15.07% significantly outperformed against the industry average.
- Net operating cash flow has significantly increased by 57.58% to $193.57 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 19.91%.
-- Written by a member of TheStreet Ratings Staff