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) -- National Presto Industries (NYSE: NPK) has been upgraded by TheStreet Ratings from hold to buy. Among the primary strengths of the company is its revenue growth. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.
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- The revenue growth came in higher than the industry average of 6.5%. Since the same quarter one year prior, revenues rose by 19.1%. 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.
- Looking at the price performance of NPK's shares over the past 12 months, there is not much good news to report: the stock is down 26.32%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Looking ahead, the stock's sharp decline over the past year may have been what was needed in order to bring its value into alignment with its fundamentals and others in its industry.
- NATIONAL PRESTO INDS INC's earnings per share declined by 15.3% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, NATIONAL PRESTO INDS INC reported lower earnings of $5.64 versus $6.98 in the prior year.
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Aerospace & Defense industry average. The net income has decreased by 14.7% when compared to the same quarter one year ago, dropping from $13.40 million to $11.43 million.
-- Written by a member of TheStreet Ratings Staff