The manufacturer and distributor of engines for on and off-road applications in China reported net earnings were $29.3 million, or 78 cents per share, compared to $27.7 million, or 74 cents per share from the 2013 first quarter.
TheStreet Ratings team rates CHINA YUCHAI INTERNATIONAL as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHINA YUCHAI INTERNATIONAL (CYD) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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, solid stock price performance, attractive valuation levels and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 2.0%. Since the same quarter one year prior, revenues rose by 28.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.35, is low and is below the industry average, implying that there has been successful management of debt levels.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 38.23% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CYD should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- CHINA YUCHAI INTERNATIONAL has improved earnings per share by 15.6% 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. During the past fiscal year, CHINA YUCHAI INTERNATIONAL increased its bottom line by earning $3.07 versus $2.44 in the prior year.
- You can view the full analysis from the report here: CYD Ratings Report