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NEW YORK (TheStreet) -- Magal Security Systems (MAGS) 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 MAGAL SECURITY SYSTEMS (MAGS) a BUY. This is driven by a number of 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, solid stock price performance and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- MAGS's very impressive revenue growth greatly exceeded the industry average of 2.2%. Since the same quarter one year prior, revenues leaped by 67.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- MAGS's debt-to-equity ratio is very low at 0.13 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, MAGS has a quick ratio of 2.33, which demonstrates the ability of the company to cover short-term liquidity needs.
- Powered by its strong earnings growth of 1200.00% and other important driving factors, this stock has surged by 44.95% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MAGS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 1250.0% when compared to the same quarter one year prior, rising from -$0.32 million to $3.63 million.
- 48.26% is the gross profit margin for MAGAL SECURITY SYSTEMS which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 16.92% is above that of the industry average.
- You can view the full analysis from the report here: MAGS Ratings Report