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) -- Radiant Logistics (AMEX: RLGT) 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 and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.
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- RLGT's revenue growth has slightly outpaced the industry average of 4.4%. Since the same quarter one year prior, revenues slightly increased by 7.7%. 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.
- Net operating cash flow has increased to $4.90 million or 35.28% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 3.62%.
- RADIANT LOGISTICS INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, RADIANT LOGISTICS INC reported lower earnings of $0.06 versus $0.09 in the prior year. This year, the market expects an improvement in earnings ($0.08 versus $0.06).
- The change in net income from the same quarter one year ago has significantly exceeded that of the Air Freight & Logistics industry average, but is less than that of the S&P 500. The net income has significantly decreased by 95.0% when compared to the same quarter one year ago, falling from $0.42 million to $0.02 million.
- The share price of RADIANT LOGISTICS INC has not done very well: it is down 18.99% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it is one of the factors that makes this stock an attractive investment.
-- Written by a member of TheStreet Ratings Staff