Medley Capital Corp Stock Upgraded (MCC)

NEW YORK ( TheStreet) -- Medley Capital (NYSE: MCC) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Highlights from the ratings report include:
  • MCC's very impressive revenue growth greatly exceeded the industry average of 6.0%. Since the same quarter one year prior, revenues leaped by 102.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • MEDLEY CAPITAL CORP has improved earnings per share by 17.6% 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 year. We feel that this trend should continue. During the past fiscal year, MEDLEY CAPITAL CORP increased its bottom line by earning $1.24 versus $0.55 in the prior year. This year, the market expects an improvement in earnings ($1.48 versus $1.24).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 97.4% when compared to the same quarter one year prior, rising from $5.84 million to $11.52 million.
  • The gross profit margin for MEDLEY CAPITAL CORP is rather high; currently it is at 65.97%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 57.01% significantly outperformed against the industry average.
  • Net operating cash flow has increased to -$29.77 million or 41.57% when compared to the same quarter last year. In addition, MEDLEY CAPITAL CORP has also vastly surpassed the industry average cash flow growth rate of -298.78%.

Medley Capital Corporation is a business development company. The fund seeks to invest in privately negotiated debt and equity securities of small and middle market companies. Medley has a market cap of $403.6 million and is part of the financial sector and financial services industry. Shares are down 3.4% year to date as of the close of trading on Tuesday.

You can view the full Medley Ratings Report or get investment ideas from our investment research center.

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more..
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

If you liked this article you might like

5 Stocks Insiders Love Right Now

C-Suite Sweet Spot: Insider Buying by CEO and CFO Is Worth Tracking

3 Hold-Rated Dividend Stocks: DKL, MCC, SSW

3 Hold-Rated Dividend Stocks: EVA, ABR, MCC

What To Hold: 3 Hold-Rated Dividend Stocks CLMS, MCC, AHGP