NEW YORK ( TheStreet) -- Expeditors International of Washington (Nasdaq: EXPD) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, growth in earnings per share, increase in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins.
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- EXPD has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 2.86, which clearly demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has increased to $165.26 million or 12.12% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -16.13%.
- EXPEDITORS INTL WASH INC has improved earnings per share by 8.3% 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, EXPEDITORS INTL WASH INC reported lower earnings of $1.57 versus $1.79 in the prior year. This year, the market expects an improvement in earnings ($1.77 versus $1.57).
- The net income growth from the same quarter one year ago has exceeded that of the Air Freight & Logistics industry average, but is less than that of the S&P 500. The net income increased by 4.7% when compared to the same quarter one year prior, going from $76.71 million to $80.32 million.
- EXPD, with its decline in revenue, slightly underperformed the industry average of 4.9%. Since the same quarter one year prior, revenues slightly dropped by 0.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.