Joy Global Inc. Stock Buy Recommendation Reiterated (JOY)

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) -- Joy Global (NYSE: JOY) has been reiterated by TheStreet Ratings as a buy with a ratings score of B . The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

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Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 12.8%. Since the same quarter one year prior, revenues rose by 19.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 23.3% when compared to the same quarter one year prior, going from $172.35 million to $212.56 million.
  • Net operating cash flow has increased to $205.59 million or 27.69% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 16.14%.
  • The current debt-to-equity ratio, 0.53, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.84 is somewhat weak and could be cause for future problems.

Joy Global Inc. engages in the manufacture and servicing of mining equipment for the extraction of coal, copper, iron ore, oil sands, and other minerals. It operates in two segments, Underground Mining Machinery and Surface Mining Equipment. Joy Global has a market cap of $6.78 billion and is part of the industrial goods sector and industrial industry. The company has a P/E ratio of 8.7, below the S&P 500 P/E ratio of 17.7. Shares are down 1.6% year to date as of the close of trading on Friday.

You can view the full Joy Global Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

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