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. TheStreet Ratings quantitative algorithm evaluates over 4,300 stocks on a daily basis by 32 different data factors and assigns a unique buy, sell, or hold recommendation on each stock. Click here to learn more.
NEW YORK (TheStreet) -- Jiayuan.com Intl Ltd (DATE) has been upgraded by TheStreet Ratings to "buy" from "hold" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate JIAYUAN.COM INTL LTD (DATE) 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 largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels 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:
- DATE 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. To add to this, DATE has a quick ratio of 2.30, which demonstrates the ability of the company to cover short-term liquidity needs.
- JIAYUAN.COM INTL LTD reported flat earnings per share in the most recent 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, JIAYUAN.COM INTL LTD increased its bottom line by earning $0.34 versus $0.31 in the prior year. This year, the market expects an improvement in earnings ($0.36 versus $0.34).
- DATE, with its decline in revenue, underperformed when compared the industry average of 19.9%. Since the same quarter one year prior, revenues slightly dropped by 1.1%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
- The gross profit margin for JIAYUAN.COM INTL LTD is rather high; currently it is at 62.78%. Regardless of DATE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, DATE's net profit margin of 10.94% is significantly lower than the industry average.
- You can view the full analysis from the report here: DATE Ratings Report
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.