Why Maxwell Technologies (MXWL) Stock Hit a 52-Week High Today

NEW YORK (TheStreet) -- Maxwell Technologies (MXWL) was gaining 7.2% to $16.75, and hit a 52-week high of $17.15, Wednesday after Piper Jaffray increased its price target for the company to $25 from $23.

Piper Jaffray analyst Alexander Potter said checks indicate that Maxwell's biggest customer, Chinese bus company Yutong, is ramping up its orders. The firm reiterated its "overweight" rating on the stock.

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TheStreet Ratings team rates MAXWELL TECHNOLOGIES INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate MAXWELL TECHNOLOGIES INC (MXWL) a BUY. This is driven by a few notable 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 increase in net income, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 214.7% when compared to the same quarter one year prior, rising from -$0.28 million to $0.32 million.
  • MXWL's debt-to-equity ratio is very low at 0.07 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.39, which illustrates the ability to avoid short-term cash problems.
  • 44.64% is the gross profit margin for MAXWELL TECHNOLOGIES INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 0.69% trails the industry average.
  • Powered by its strong earnings growth of 200.00% and other important driving factors, this stock has surged by 150.79% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • MAXWELL TECHNOLOGIES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MAXWELL TECHNOLOGIES INC reported lower earnings of $0.22 versus $0.25 in the prior year. This year, the market expects an improvement in earnings ($0.27 versus $0.22).
  • You can view the full analysis from the report here: MXWL Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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.

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