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) -- Knightsbridge Tankers (Nasdaq:VLCCF) has been upgraded by TheStreet Ratings from hold to buy. 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, expanding profit margins, good cash flow from operations and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
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Highlights from the ratings report include:
- VLCCF's very impressive revenue growth greatly exceeded the industry average of 3.1%. Since the same quarter one year prior, revenues leaped by 210.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.30, is low and is below the industry average, implying that there has been successful management of debt levels.
- The gross profit margin for KNIGHTSBRIDGE TANKERS LTD is currently very high, coming in at 76.92%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 53.31% significantly outperformed against the industry average.
- Net operating cash flow has significantly increased by 334.08% to $14.75 million when compared to the same quarter last year. In addition, KNIGHTSBRIDGE TANKERS LTD has also vastly surpassed the industry average cash flow growth rate of 16.30%.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 254.5% when compared to the same quarter one year prior, rising from -$6.94 million to $10.72 million.
Knightsbridge Tankers Limited, a shipping company, provides seaborne transportation of dry bulk cargoes worldwide. As of December 31, 2013, it owned and operated a fleet of four Capesize dry bulk carriers with a capacity of approximately 0.7 million deadweight ton. Knightsbridge Tankers has a market cap of $365.1 million and is part of the services sector and transportation industry. Shares are up 40.6% year to date as of the close of trading on Monday.