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Shares in Chinese bunker supplier Andatee China Marine Fuel Services Corporation have been upgraded from 'sell' to 'hold' by stock analysis and reporting service TheStreet Ratings.

According to the latest ratings report, Andatee's strengths can be seen in its 'robust revenue growth', 'attractive valuation levels' and 'largely solid financial position with reasonable debt levels'.

However, as a counter to these strengths, the report also finds weaknesses including 'unimpressive growth in net income', 'poor profit margins' and 'weak operating cash flow'.

Rating Summary

Growth: 4.0 out of 5 stars
Measures the growth of both the company's income statement and cash flow. On this factor, AMCF has a growth score better than 70 percent of the stocks the service rates.

Total Return: 1.5 out of 5 stars
Measures the historical price movement of the stock. The stock performance of this company has beaten 20 percent of the companies TheStreet Ratings covers.

Efficiency: 4.0 out of 5 stars
Measures the strength and historic growth of a company's return on invested capital. The company has generated more income per dollar of capital than 70 percent of the companies TheStreet Ratings reviews.

Price Volatility: 3.0 out of 5 stars
Measures the volatility of the company's stock price historically. The stock is less volatile than 50 percent of the stocks TheStreet Ratings monitors.

Solvency: 1.5 out of 5 stars
Measures the solvency of the company based on several ratios. The company is more solvent than 20 percent of the companies TheStreet Ratings analyzes.

Income: 0.5 out of 5 stars
Measures dividend yield and payouts to shareholders. This company pays no dividends.

Financial Analysis

In a financial summary of the Chinese supplier, the report says: "Andatee China Marine Fuel's gross profit margin for the second quarter of its fiscal year 2011 has significantly decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. Andatee China Marine Fuel has very weak liquidity. Currently, the Quick Ratio is 0.28 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

"At the same time, stockholders' equity has greatly increased by 25.59 percent from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future."