Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. NEW YORK ( TheStreet) -- Entravision Communications Corporation (NYSE: EVC) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, revenue growth, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
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- Compared to other companies in the Media industry and the overall market, ENTRAVISION COMMUNICATIONS's return on equity significantly exceeds that of both the industry average and the S&P 500.
- EVC's revenue growth has slightly outpaced the industry average of 0.6%. Since the same quarter one year prior, revenues slightly increased by 4.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- ENTRAVISION COMMUNICATIONS reported significant earnings per share improvement 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, ENTRAVISION COMMUNICATIONS turned its bottom line around by earning $0.15 versus -$0.09 in the prior year. This year, the market expects an improvement in earnings ($0.24 versus $0.15).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 145.5% when compared to the same quarter one year prior, rising from $2.07 million to $5.07 million.
- Net operating cash flow has increased to $14.43 million or 13.88% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -16.05%.