- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Professional Services industry average. The net income increased by 8.8% when compared to the same quarter one year prior, going from $17.52 million to $19.06 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 20.3%. Since the same quarter one year prior, revenues rose by 14.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- JOBS 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 this, the company maintains a quick ratio of 4.12, which clearly demonstrates the ability to cover short-term cash needs.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The gross profit margin for 51JOB INC -ADR is currently very high, coming in at 74.54%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 28.24% significantly outperformed against the industry average.
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 Diversified Services industry as a whole closed the day down 0.6% versus the S&P 500, which was down 0.2%. Laggards within the Diversified Services industry included General Employment ( JOB), down 3.1%, RLJ Entertainment ( RLJE), down 4.1%, Universal Security Instruments ( UUU), down 1.9%, Onvia ( ONVI), down 3.0% and DLH Holdings ( DLHC), down 4.6%. TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today: 51job ( JOBS) is one of the companies that pushed the Diversified Services industry lower today. 51job was down $3.42 (8.9%) to $34.83 on heavy volume. Throughout the day, 576,111 shares of 51job exchanged hands as compared to its average daily volume of 153,700 shares. The stock ranged in price between $31.66-$36.98 after having opened the day at $31.66 as compared to the previous trading day's close of $38.25. 51job, Inc., through its subsidiaries, provides integrated human resource services in the People's Republic of China. 51job has a market cap of $2.2 billion and is part of the services sector. Shares are down 1.8% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate 51job a buy, 1 analyst rates it a sell, and 2 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 51job as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year and expanding profit margins. 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 TheStreet Ratings analysis on JOBS go as follows: