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) -- TTM Technologies (Nasdaq: TTMI) 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, increase in net income and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and a generally disappointing performance in the stock itself.
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- The revenue growth came in higher than the industry average of 6.5%. Since the same quarter one year prior, revenues slightly increased by 5.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving 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 Electronic Equipment, Instruments & Components industry. The net income increased by 40.9% when compared to the same quarter one year prior, rising from $11.17 million to $15.74 million.
- TTM TECHNOLOGIES INC has improved earnings per share by 35.7% 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, TTM TECHNOLOGIES INC swung to a loss, reporting -$2.11 versus $0.51 in the prior year. This year, the market expects an improvement in earnings ($0.74 versus -$2.11).
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, TTM TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for TTM TECHNOLOGIES INC is rather low; currently it is at 22.50%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 4.11% trails that of the industry average.
-- Written by a member of TheStreet Ratings Staff