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"We rate CITIZENS INC (CIA) 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 compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth and good cash flow from operations. 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:
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Insurance industry average. The net income increased by 27.4% when compared to the same quarter one year prior, rising from $1.82 million to $2.32 million.
- CIA's revenue growth trails the industry average of 24.5%. Since the same quarter one year prior, revenues slightly increased by 6.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- CIA 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.
- CITIZENS INC has improved earnings per share by 25.0% 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 year. During the past fiscal year, CITIZENS INC increased its bottom line by earning $0.11 versus $0.09 in the prior year.
- Net operating cash flow has slightly increased to $23.43 million or 9.93% when compared to the same quarter last year. Despite an increase in cash flow, CITIZENS INC's cash flow growth rate is still lower than the industry average growth rate of 27.65%.
- You can view the full analysis from the report here: CIA Ratings Report