- The revenue growth came in higher than the industry average of 6.2%. Since the same quarter one year prior, revenues rose by 11.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The current debt-to-equity ratio, 0.36, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.21, which illustrates the ability to avoid short-term cash problems.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 69.3% when compared to the same quarter one year prior, rising from $27.64 million to $46.79 million.
- COLFAX CORP's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, COLFAX CORP turned its bottom line around by earning $1.52 versus -$1.09 in the prior year. This year, the market expects an improvement in earnings ($2.60 versus $1.52).
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 40.42% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
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. The Industrial industry as a whole closed the day down 1.4% versus the S&P 500, which was down 1.1%. Laggards within the Industrial industry included Bonso Electronics International ( BNSO), down 3.2%, Servotronics ( SVT), down 3.5%, LGL Group ( LGL), down 8.2%, American DG Energy ( ADGE), down 6.9% and THT Heat Transfer Technology ( THTI), down 4.6%. TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today: Colfax ( CFX) is one of the companies that pushed the Industrial industry lower today. Colfax was down $4.09 (5.6%) to $68.61 on heavy volume. Throughout the day, 2,320,975 shares of Colfax exchanged hands as compared to its average daily volume of 491,500 shares. The stock ranged in price between $65.72-$69.80 after having opened the day at $65.76 as compared to the previous trading day's close of $72.70. Colfax Corporation, a diversified industrial manufacturing and engineering company, provides gas-and fluid-handling and fabrication technology products and services to commercial and governmental customers worldwide. Colfax has a market cap of $9.0 billion and is part of the industrial goods sector. Shares are up 13.8% year-to-date as of the close of trading on Wednesday. Currently there are 4 analysts who rate Colfax a buy, no analysts rate it a sell, and 8 rate it a hold. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings rates Colfax as a buy. 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, compelling growth in net income, growth in earnings per share and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Highlights from TheStreet Ratings analysis on CFX go as follows: