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NEW YORK (TheStreet) -- American Public Education (APEI) 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 AMERICAN PUBLIC EDUCATION (APEI) 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, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
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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 5.9%. Since the same quarter one year prior, revenues slightly increased by 3.6%. 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.
- APEI 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. To add to this, APEI has a quick ratio of 2.17, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has increased to $24.95 million or 27.53% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 0.80%.
- The gross profit margin for AMERICAN PUBLIC EDUCATION is rather high; currently it is at 63.84%. Regardless of APEI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, APEI's net profit margin of 10.43% compares favorably to the industry average.
- You can view the full analysis from the report here: APEI Ratings Report