Why Siliconware Precision Industries (SPIL) Stock Is Still a 'Buy' at TheStreet

NEW YORK (TheStreet) -- TheStreet Ratings team reiterated its "buy" rating for Siliconware Precision Industries (SPIL) Wednesday with a ratings score of A.

Shares of Siliconware were falling -6.1% to $8.34.

About 1.7 million shares of Siliconware Precision Industries were traded Wednesday, more than double the daily average trading volume of about 600,000 shares a day.

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TheStreet Ratings team rates SILICONWARE PRECISION INDS as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate SILICONWARE PRECISION INDS (SPIL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, attractive valuation levels, compelling growth in net income and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

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

  • The revenue growth came in higher than the industry average of 2.9%. Since the same quarter one year prior, revenues rose by 27.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 650.00% and other important driving factors, this stock has surged by 32.75% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SPIL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 801.4% when compared to the same quarter one year prior, rising from -$9.79 million to $68.67 million.
  • Net operating cash flow has slightly increased to $162.99 million or 4.20% when compared to the same quarter last year. In addition, SILICONWARE PRECISION INDS has also modestly surpassed the industry average cash flow growth rate of 2.94%.
  • You can view the full analysis from the report here: SPIL Ratings Report

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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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