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) -- Old Republic International (NYSE: ORI) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, compelling growth in net income, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.
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- Since the same quarter one year prior, revenues slightly increased by 9.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has significantly increased by 192.24% to $143.20 million when compared to the same quarter last year.
- The net income increased by 13950.0% when compared to the same quarter one year prior, rising from $0.40 million to $56.20 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization.
- Compared to where it was trading one year ago, ORI is up 35.79% to its most recent closing price of 13.81. Looking ahead, although the push and pull of a bull or bear market could certainly alter the outcome, our view is that this stock's positive fundamentals give it good potential for further appreciation.
-- Written by a member of TheStreet Ratings Staff