NEW YORK ( TheStreet) -- Xilinx (Nasdaq: XLNX) has been reiterated by TheStreet Ratings as a buy with a ratings score of A. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
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- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry average. The net income increased by 6.7% when compared to the same quarter one year prior, going from $122.41 million to $130.62 million.
- The current debt-to-equity ratio, 0.31, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 5.03, which clearly demonstrates the ability to cover short-term cash needs.
- XILINX INC has improved earnings per share by 6.8% 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, XILINX INC reported lower earnings of $1.78 versus $1.94 in the prior year. This year, the market expects an improvement in earnings ($1.98 versus $1.78).
- The gross profit margin for XILINX INC is rather high; currently it is at 68.70%. Regardless of XLNX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, XLNX's net profit margin of 24.54% compares favorably to the industry average.
--Written by a member of TheStreet Ratings Staff.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.