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TheStreet Ratings team rates ALICO INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALICO INC (ALCO) 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, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 2.0%. Since the same quarter one year prior, revenues rose by 13.1%. 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.
- ALCO's debt-to-equity ratio is very low at 0.24 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, ALCO has a quick ratio of 2.22, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has significantly increased by 1112.81% to $13.44 million when compared to the same quarter last year. In addition, ALICO INC has also vastly surpassed the industry average cash flow growth rate of 34.63%.
- The gross profit margin for ALICO INC is rather high; currently it is at 58.08%. Regardless of ALCO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ALCO's net profit margin of 47.27% significantly outperformed against the industry.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: ALCO Ratings Report