Rating Change #3
Ambient Corporation (AMBT) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.
Highlights from the ratings report include:
- AMBT's very impressive revenue growth greatly exceeded the industry average of 8.9%. Since the same quarter one year prior, revenues leaped by 249.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- AMBT's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, AMBT has a quick ratio of 2.35, which demonstrates the ability of the company to cover short-term liquidity needs.
- Compared to its price level of one year ago, AMBT is down 1.12% to its most recent closing price of 7.12. Looking ahead, our view is that this company's fundamentals will not have much impact either way, allowing the stock to generally move up or down based on the push and pull of the broad market.
- AMBIENT CORP has shown no change in earnings for its most recently reported quarter when compared with the same quarter a year earlier. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, AMBIENT CORP turned its bottom line around by earning $0.00 versus -$2.00 in the prior year.
- 43.40% is the gross profit margin for AMBIENT CORP which we consider to be strong. Regardless of AMBT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 15.30% trails the industry average.
Ambient Corporation, a smart grid communications platforms integrator, develops high-speed Internet protocols-based data communications networks for the medium and low-voltage distribution grids in North America. Ambient has a market cap of $128 million and is part of the technology sector and telecommunications industry.You can view the full Ambient Ratings Report or get investment ideas from our investment research center.