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) -- StealthGas (Nasdaq: GASS) 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, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
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- GASS's revenue growth has slightly outpaced the industry average of 2.1%. Since the same quarter one year prior, revenues slightly increased by 5.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 72.72% and other important driving factors, this stock has surged by 124.00% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GASS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- STEALTHGAS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, STEALTHGAS INC increased its bottom line by earning $1.41 versus $0.42 in the prior year. This year, the market expects an improvement in earnings ($1.45 versus $1.41).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 74.5% when compared to the same quarter one year prior, rising from $4.45 million to $7.76 million.
- The gross profit margin for STEALTHGAS INC is rather high; currently it is at 62.00%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 25.36% significantly outperformed against the industry average.
-- Written by a member of TheStreet Ratings Staff