NEW YORK ( TheStreet) -- Invacare Corporation (NYSE: IVC) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, disappointing return on equity and poor profit margins.
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- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 327.3% when compared to the same quarter one year prior, rising from $8.23 million to $35.18 million.
- IVC's debt-to-equity ratio is very low at 0.18 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.94 is somewhat weak and could be cause for future problems.
- IVC, with its decline in revenue, slightly underperformed the industry average of 0.9%. Since the same quarter one year prior, revenues slightly dropped by 4.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The gross profit margin for INVACARE CORP is currently lower than what is desirable, coming in at 30.99%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 10.42% trails that of the industry average.
- Net operating cash flow has significantly decreased to -$35.30 million or 4179.15% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.