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"We rate SEACOR HOLDINGS INC (CKH) a BUY. This is driven by a few notable strengths, 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 growth in earnings per share, increase in net income, revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- SEACOR HOLDINGS INC has improved earnings per share by 7.7% in the most recent quarter compared to the same quarter a year ago. 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, SEACOR HOLDINGS INC increased its bottom line by earning $2.13 versus $1.19 in the prior year. This year, the market expects an improvement in earnings ($2.20 versus $2.13).
- 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 Energy Equipment & Services industry average. The net income increased by 9.3% when compared to the same quarter one year prior, going from $19.27 million to $21.07 million.
- CKH's revenue growth trails the industry average of 19.6%. Since the same quarter one year prior, revenues slightly increased by 4.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Net operating cash flow has significantly increased by 112.83% to $45.64 million when compared to the same quarter last year. In addition, SEACOR HOLDINGS INC has also vastly surpassed the industry average cash flow growth rate of 25.80%.
- Despite currently having a low debt-to-equity ratio of 0.59, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 3.00 is very high and demonstrates very strong liquidity.
- You can view the full analysis from the report here: CKH Ratings Report
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