TSC Ratings' Updates: Kohl's

Return on equity has greatly decreased when compared with its return on equity from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared with other companies in the communications equipment industry and the overall market, ADCT's return on equity significantly trails that of both the industry average and the S&P 500.

Looking at the price performance of ADCT's shares over the past 12 months, there is not much good news to report: the stock is down 45.16%, and it has underperformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and the communications equipment industry average. The net income has decreased by 9.0% when compared with the same quarter one year ago, dropping from $16.60 million to $15.10 million.

36.80% is the gross profit margin for ADCT, which we consider to be strong. Regardless of ADCT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ADCT's net profit margin of 3.90% is significantly lower than the same period one year prior.