Electro-Sensors (ELSE) Upgraded From Hold to Buy

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.  TheStreet Ratings quantitative algorithm evaluates over 4,300 stocks on a daily basis by 32 different data factors and assigns a unique buy, sell, or hold recommendation on each stock.  Click here to learn more.

NEW YORK (TheStreet) -- Electro-Sensors  (ELSE) 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 ELECTRO-SENSORS INC (ELSE) 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Must Read: Warren Buffett's 25 Favorite Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 2.1%. Since the same quarter one year prior, revenues rose by 12.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • ELSE's debt-to-equity ratio is very low at 0.07 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 8.74, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for ELECTRO-SENSORS INC is rather high; currently it is at 62.60%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 16.32% is above that of the industry average.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 201.0% when compared to the same quarter one year prior, rising from $0.10 million to $0.31 million.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

If you liked this article you might like

Electro-Sensors (ELSE) Downgraded From Buy to Hold

Electro-Sensors (ELSE) Downgraded From Buy to Hold

Electro-Sensors Inc. Stock Upgraded (ELSE)

Electro-Sensors Inc. Stock Upgraded (ELSE)