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) -- G. Willi-Food International (Nasdaq: WILC) 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, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins.
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- The revenue growth greatly exceeded the industry average of 2.4%. Since the same quarter one year prior, revenues rose by 28.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- WILC 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 9.60, which clearly demonstrates the ability to cover short-term cash needs.
- G WILLI-FOOD INTL LTD has improved earnings per share by 46.1% 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. During the past fiscal year, G WILLI-FOOD INTL LTD increased its bottom line by earning $0.50 versus $0.30 in the prior year.
- The gross profit margin for G WILLI-FOOD INTL LTD is currently lower than what is desirable, coming in at 27.59%. Regardless of WILC's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, WILC's net profit margin of 10.80% compares favorably to the industry average.
- Net operating cash flow has significantly decreased to $1.48 million or 53.80% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.