InvestorsHub Logo

rarefind

09/08/12 11:42 AM

#57 RE: Bruce the Stock Guy #56

Dealing with it, thanks!!....rareF


Flow International Corporation Stock Upgraded (FLOW)
By TheStreet Wire 09/03/12 - 05:06 AM EDT
Ashenberg's Breakout Stocks: See if Bryan thinks (FLOW) has tremendous breakout potential



NEW YORK (TheStreet) -- Flow International Corporation (Nasdaq:FLOW) has been upgraded by TheStreet Ratings from hold to buy. 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, impressive record of earnings per share growth, compelling growth in net income and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

by Jim Cramer, the Street.com

Highlights from the ratings report include:

FLOW's revenue growth has slightly outpaced the industry average of 10.0%. Since the same quarter one year prior, revenues rose by 10.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
FLOW's debt-to-equity ratio is very low at 0.11 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.06, which illustrates the ability to avoid short-term cash problems.
FLOW INTL CORP 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, FLOW INTL CORP increased its bottom line by earning $0.20 versus $0.02 in the prior year. This year, the market expects an improvement in earnings ($0.24 versus $0.20).
The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 212.4% when compared to the same quarter one year prior, rising from $0.71 million to $2.22 million.
Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.

Flow International Corporation, a technology-based company, provides water jet cutting and surface preparing solutions. The company has a P/E ratio of 14.9, below the average industrial industry P/E ratio of 17.9 and below the S&P 500 P/E ratio of 17.7. Flow International has a market cap of $172.6 million and is part of the industrial goods sector and industrial industry. Shares are down 5.4% year to date as of the close of trading on Friday.

You can view the full Flow International Ratings Report or get investment ideas from our investment research center.