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) -- PGT (Nasdaq: PGTI) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
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- This stock has managed to rise its share value by 152.46% over the past twelve months. Regarding the stock's future course, although almost any stock can fall in a broad market decline, PGTI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Building Products industry. The net income increased by 1029.5% when compared to the same quarter one year prior, rising from $0.24 million to $2.72 million.
- The current debt-to-equity ratio, 0.54, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, PGTI has a quick ratio of 2.28, which demonstrates the ability of the company to cover short-term liquidity needs.
- 40.90% is the gross profit margin for PGT INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 6.08% is above that of the industry average.
- Net operating cash flow has significantly increased by 78.92% to $7.50 million when compared to the same quarter last year. In addition, PGT INC has also vastly surpassed the industry average cash flow growth rate of 2.81%.
-- Written by a member of TheStreet Ratings Staff