The firm said it raised its rating on the marketer and retailer of vitamins, minerals, specialty supplements, sports nutrition, and other health products, as it believes the worst of the company's margin pressure is in the past.
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Separately, TheStreet Ratings team rates VITAMIN SHOPPE INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate VITAMIN SHOPPE INC (VSI) a BUY. This is driven by some important positives, 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 3.6%. Since the same quarter one year prior, revenues rose by 10.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- VSI has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.01, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has significantly increased by 70.56% to $19.02 million when compared to the same quarter last year. In addition, VITAMIN SHOPPE INC has also vastly surpassed the industry average cash flow growth rate of -8.53%.
- VITAMIN SHOPPE INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. 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, VITAMIN SHOPPE INC increased its bottom line by earning $2.18 versus $2.02 in the prior year. This year, the market expects an improvement in earnings ($2.40 versus $2.18).
- You can view the full analysis from the report here: VSI Ratings Report