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) -- Pope Resources (Nasdaq: POPE) 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, expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
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- POPE's very impressive revenue growth greatly exceeded the industry average of 14.8%. Since the same quarter one year prior, revenues leaped by 89.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.66, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
- Powered by its strong earnings growth of 181.48% and other important driving factors, this stock has surged by 37.33% 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.
- 46.70% is the gross profit margin for POPE RESOURCES/DE -LP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 20.83% significantly outperformed against the industry average.
- Net operating cash flow has significantly increased by 124.75% to $4.55 million when compared to the same quarter last year. In addition, POPE RESOURCES/DE -LP has also vastly surpassed the industry average cash flow growth rate of 18.92%.
-- Written by a member of TheStreet Ratings Staff