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NEW YORK (TheStreet) -- Gulf Island Fabrication (GIFI) 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 GULF ISLAND FABRICATION INC (GIFI) a BUY. This is driven by multiple 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 impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- GULF ISLAND FABRICATION INC reported significant earnings per share improvement 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 two years. We feel that this trend should continue. During the past fiscal year, GULF ISLAND FABRICATION INC turned its bottom line around by earning $0.50 versus -$0.29 in the prior year. This year, the market expects an improvement in earnings ($1.43 versus $0.50).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Energy Equipment & Services industry. The net income increased by 131.6% when compared to the same quarter one year prior, rising from $3.28 million to $7.59 million.
- GIFI 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, GIFI has a quick ratio of 1.64, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has significantly increased by 257.63% to $2.18 million when compared to the same quarter last year. In addition, GULF ISLAND FABRICATION INC has also vastly surpassed the industry average cash flow growth rate of 17.42%.
- The revenue fell significantly faster than the industry average of 16.2%. Since the same quarter one year prior, revenues fell by 29.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full analysis from the report here: GIFI Ratings Report