Stein Mart Stock Upgraded (SMRT)

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) -- Stein Mart (Nasdaq: SMRT) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, solid stock price performance, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

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Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 129.9% when compared to the same quarter one year prior, rising from $5.89 million to $13.55 million.
  • SMRT's revenue growth trails the industry average of 26.0%. Since the same quarter one year prior, revenues rose by 11.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 130.76% and other important driving factors, this stock has surged by 38.10% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SMRT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Net operating cash flow has significantly increased by 539.90% to $21.65 million when compared to the same quarter last year. In addition, STEIN MART INC has also vastly surpassed the industry average cash flow growth rate of 40.53%.
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Stein Mart, Inc. operates as an apparel retailer in the United States. It offers fashion apparel for women and men, as well as accessories, shoes, and home fashions. The company primarily focuses on 35-55 year old women. As of October 25, 2012, it operated 263 stores. The company has a P/E ratio of 22.8, above the S&P 500 P/E ratio of 17.7. Stein Mart has a market cap of $347.8 million and is part of the services sector and retail industry. Shares are up 13.9% year to date as of the close of trading on Monday.

You can view the full Stein Mart 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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