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NEW YORK (TheStreet) -- Kulicke & Soffa Industries (KLIC) has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate KULICKE & SOFFA INDUSTRIES (KLIC) a BUY. This is driven by several positive factors, 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite its growing revenue, the company underperformed as compared with the industry average of 18.4%. Since the same quarter one year prior, revenues rose by 12.2%. 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.
- KLIC 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 9.45, which clearly demonstrates the ability to cover short-term cash needs.
- KULICKE & SOFFA INDUSTRIES' earnings per share from the most recent quarter came in slightly below the year earlier 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, KULICKE & SOFFA INDUSTRIES increased its bottom line by earning $0.81 versus $0.79 in the prior year. This year, the market expects an improvement in earnings ($1.00 versus $0.81).
- 48.56% is the gross profit margin for KULICKE & SOFFA INDUSTRIES which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 15.02% trails the industry average.
- You can view the full analysis from the report here: KLIC Ratings Report