Netsol Technologies Inc. Stock Upgraded (NTWK)

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) -- Netsol Technologies (Nasdaq: NTWK) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, attractive valuation levels and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

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Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 0.9%. Since the same quarter one year prior, revenues rose by 37.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • NTWK's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, NTWK has a quick ratio of 1.66, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Powered by its strong earnings growth of 180.00% and other important driving factors, this stock has surged by 136.66% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 594.7% when compared to the same quarter one year prior, rising from $0.32 million to $2.22 million.
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NetSol Technologies, Inc. designs, develops, markets, and exports software products primarily to the automobile finance and leasing, banking, healthcare, and financial services industries worldwide. It also provides system integration, consulting, and IT products and services. Netsol has a market cap of $98.9 million and is part of the technology sector and computer software & services industry. Shares are up 22.9% year to date as of the close of trading on Wednesday.

You can view the full Netsol 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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