Knoll Inc. Stock Upgraded (KNL)

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) -- Knoll (NYSE: KNL) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations, increase in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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Highlights from the ratings report include:
  • KNL's revenue growth has slightly outpaced the industry average of 7.4%. Since the same quarter one year prior, revenues rose by 14.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Commercial Services & Supplies industry average. The net income increased by 34.8% when compared to the same quarter one year prior, rising from $6.07 million to $8.19 million.
  • Net operating cash flow has significantly increased by 438.42% to $13.99 million when compared to the same quarter last year. In addition, KNOLL INC has also vastly surpassed the industry average cash flow growth rate of 6.50%.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.

Knoll, Inc., together with its subsidiaries, designs, manufactures, markets, and sells furnishings and accessories, textiles, fine leathers, and felt for the workplace and home in the United States, Canada, and Europe. It operates through Office, Studio, and Coverings segments. Knoll has a market cap of $886.2 million and is part of the consumer goods sector and consumer durables industry. Shares are down 0.2% year to date as of the close of trading on Monday.

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

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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