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NEW YORK (TheStreet) -- ASM International N.V. (ASMI) 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 ASM INTERNATIONAL NV (ASMI) 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 solid stock price performance, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. 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:
- Compared to its closing price of one year ago, ASMI's share price has jumped by 27.16%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ASMI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- ASMI 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 4.09, which clearly demonstrates the ability to cover short-term cash needs.
- 47.94% is the gross profit margin for ASM INTERNATIONAL NV which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 50.87% significantly outperformed against the industry average.
- The revenue fell significantly faster than the industry average of 18.6%. Since the same quarter one year prior, revenues fell by 30.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- ASM INTERNATIONAL NV's earnings per share declined by 14.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, ASM INTERNATIONAL NV increased its bottom line by earning $22.59 versus $0.19 in the prior year. For the next year, the market is expecting a contraction of 89.3% in earnings ($2.42 versus $22.59).
- You can view the full analysis from the report here: ASMI Ratings Report