Orion Marine Group Inc. Stock Upgraded (ORN)

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) -- Orion Marine Group (NYSE: ORN) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins.

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Highlights from the ratings report include:
  • ORN's very impressive revenue growth greatly exceeded the industry average of 8.9%. Since the same quarter one year prior, revenues leaped by 78.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ORN's debt-to-equity ratio is very low at 0.06 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.39, which illustrates the ability to avoid short-term cash problems.
  • The gross profit margin for ORION MARINE GROUP INC is rather low; currently it is at 18.30%. Regardless of ORN's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, ORN's net profit margin of 1.50% compares favorably to the industry average.
  • Net operating cash flow has significantly decreased to $1.88 million or 68.40% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
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Orion Marine Group, Inc. operates as a marine specialty contractor serving the heavy civil marine infrastructure market. Orion Marine Group has a market cap of $247.7 million and is part of the industrial goods sector and materials & construction industry. Shares are up 24.8% year to date as of the close of trading on Friday.

You can view the full Orion Marine Group Ratings Report or get investment ideas from our investment research center.

-- Written by a member of TheStreet Ratings Staff

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.

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Orion Marine Group (ORN) Downgraded From Buy to Hold