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) -- PGT (Nasdaq: PGTI) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.
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- The revenue growth greatly exceeded the industry average of 7.7%. Since the same quarter one year prior, revenues rose by 45.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Powered by its strong earnings growth of 160.00% and other important driving factors, this stock has surged by 148.68% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- Despite the current debt-to-equity ratio of 1.81, it is still below the industry average, suggesting that this level of debt is acceptable within the Building Products industry. Despite the fact that PGTI's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.16 is high and demonstrates strong liquidity.
- 36.55% is the gross profit margin for PGT INC which we consider to be strong. Regardless of PGTI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PGTI's net profit margin of 9.69% compares favorably to the industry average.