NEW YORK ( TheStreet) -- Fresh Market (Nasdaq: TFM) 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, impressive record of earnings per share growth, increase in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
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- TFM's revenue growth has slightly outpaced the industry average of 3.7%. Since the same quarter one year prior, revenues rose by 12.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- FRESH MARKET INC has improved earnings per share by 15.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, FRESH MARKET INC increased its bottom line by earning $1.34 versus $1.07 in the prior year. This year, the market expects an improvement in earnings ($1.56 versus $1.34).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Food & Staples Retailing industry average. The net income increased by 14.8% when compared to the same quarter one year prior, going from $19.27 million to $22.12 million.
- 35.28% is the gross profit margin for FRESH MARKET INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 6.03% is above that of the industry average.
- Net operating cash flow has increased to $45.90 million or 28.91% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -9.14%.