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) -- Coca-Cola Bottling Company (Nasdaq: COKE) 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, reasonable valuation levels, good cash flow from operations, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
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- COKE's revenue growth has slightly outpaced the industry average of 1.6%. Since the same quarter one year prior, revenues slightly increased by 1.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- COCA-COLA BTLNG CONS has improved earnings per share by 6.1% 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, COCA-COLA BTLNG CONS reported lower earnings of $2.94 versus $3.09 in the prior year. This year, the market expects an improvement in earnings ($3.47 versus $2.94).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Beverages industry average. The net income increased by 6.5% when compared to the same quarter one year prior, going from $4.57 million to $4.86 million.
- Net operating cash flow has increased to -$13.79 million or 22.87% when compared to the same quarter last year. Despite an increase in cash flow of 22.87%, COCA-COLA BTLNG CONS is still growing at a significantly lower rate than the industry average of 722.25%.
-- Written by a member of TheStreet Ratings Staff