Courier Corp Stock Upgraded (CRRC)

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) -- Courier (Nasdaq: CRRC) has been upgraded by TheStreet Ratings from hold to 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, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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Highlights from the ratings report include:
  • CRRC's revenue growth has slightly outpaced the industry average of 5.2%. Since the same quarter one year prior, revenues slightly increased by 5.5%. 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.
  • CRRC's debt-to-equity ratio is very low at 0.25 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 1.19, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has slightly increased to $6.06 million or 5.87% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -9.76%.
  • COURIER CORP's earnings per share declined by 33.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, COURIER CORP increased its bottom line by earning $0.98 versus $0.79 in the prior year. For the next year, the market is expecting a contraction of 36.7% in earnings ($0.62 versus $0.98).

Courier Corporation, together with its subsidiaries, prints, publishes, and sells books. It operates in two segments, Book Manufacturing and Publishing. Courier has a market cap of $153 million and is part of the services sector and media industry. Shares are down 26.9% year to date as of the close of trading on Friday.

You can view the full Courier Ratings Report or get investment ideas from our investment research center.

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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