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) -- Jinpan International (Nasdaq: JST) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its 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 poor profit margins and weak operating cash flow.
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- The revenue growth came in higher than the industry average of 3.1%. Since the same quarter one year prior, revenues rose by 17.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- JST's debt-to-equity ratio is very low at 0.23 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, JST has a quick ratio of 2.19, which demonstrates the ability of the company to cover short-term liquidity needs.
- JINPAN INTERNATIONAL LTD has improved earnings per share by 28.6% 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, JINPAN INTERNATIONAL LTD increased its bottom line by earning $0.99 versus $0.84 in the prior year.
- The gross profit margin for JINPAN INTERNATIONAL LTD is currently lower than what is desirable, coming in at 33.53%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 3.67% trails that of the industry average.
- Net operating cash flow has significantly decreased to -$11.01 million or 612.37% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.