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) -- Coeur D'Alene Mines Corporation (NYSE: CDE) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
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- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 230.4% when compared to the same quarter one year prior, rising from $11.36 million to $37.55 million.
- COEUR D'ALENE MINES CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, COEUR D'ALENE MINES CORP reported lower earnings of $0.54 versus $1.05 in the prior year. This year, the market expects an improvement in earnings ($2.13 versus $0.54).
- CDE's debt-to-equity ratio is very low at 0.03 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.79 is somewhat weak and could be cause for future problems.
- 48.00% is the gross profit margin for COEUR D'ALENE MINES CORP which we consider to be strong. Regardless of CDE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CDE's net profit margin of 18.23% compares favorably to the industry average.
- CDE, with its decline in revenue, underperformed when compared the industry average of 5.8%. Since the same quarter one year prior, revenues fell by 16.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
-- Written by a member of TheStreet Ratings Staff