Ossen Innovation Co. (NASDAQ:OSN) shares have gained momentum over the last twelve months, supported by growth in steel prices and improving financial numbers. Ossen stock price soared more than 35% in Monday trade, up 79% in the last month alone. OSN stock soared more than 129% in the last twelve months with the 52-week trading range of $1.50-8.90.
Improving market fundamentals for steel markets and the company’s financial results added to trader’s sentiments. Moreover, Ossen diversification towards plain surface, rare earth and zinc has also allowed it to expand the financial numbers.
Although the company’s stock soared sharply in the last twelve months, its valuations look attractive, supported by strong growth in revenues and earnings.
OSN stock is trading around only 6.4 times to earnings and 0.4 times to books value, relative to the industry average of 18 times and 1.5 times, respectively. The stock also looks attractive trading around 0.3 times to sales, significantly lower from the industry average of 0.8 times.
After the latest rally, Ossen stock volume increased to 30 million, when the daily average stands around 76,098 shares.
In the latest quarter, its revenue improved sharply by 12% to $26.4 million, compared to the past quarter revenue of $23.4 million. Including both rare earth and zinc coated products, the sales of coated PC steel materials were $23.4 million, representing 88% of total sales in the latest quarter.
An improvement was shown across the business. The company’s gross margin increased by 22.3% to $3.0 million in the latest quarter, supported by the increase in revenues along with improvement in gross margin, which enlarged by 0.9 percent point.
Moreover, the company’s earnings per share improved 200% to $0.06 per share, higher from $0.02 per share in the prior-year quarter. The company also appears in a strong cash position to support the investment in growth opportunities. In the latest quarter, Ossen generated free cash flows of $2 million, while its cash & cash equivalents were standing around $7.6 million. Overall, improving fundamentals are driving the share price momentum.
Featured Image: osseninnovation.com
