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NEW YORK (TheStreet) -- M/A-Com Technology Solutions (MTSI) 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 M/A-COM TECHNOLOGY SOLUTIONS (MTSI) 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 robust revenue growth, solid stock price performance, increase in net income, good cash flow from operations and expanding profit margins. 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:
- The revenue growth came in higher than the industry average of 18.7%. Since the same quarter one year prior, revenues rose by 35.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 650.00% and other important driving factors, this stock has surged by 58.12% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains 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 Semiconductors & Semiconductor Equipment industry. The net income increased by 735.5% when compared to the same quarter one year prior, rising from $1.74 million to $14.54 million.
- Net operating cash flow has significantly increased by 1059.37% to $15.27 million when compared to the same quarter last year. In addition, M/A-COM TECHNOLOGY SOLUTIONS has also vastly surpassed the industry average cash flow growth rate of 11.72%.
- 49.39% is the gross profit margin for M/A-COM TECHNOLOGY SOLUTIONS which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, MTSI's net profit margin of 12.71% significantly trails the industry average.
- You can view the full analysis from the report here: MTSI Ratings Report