NEW YORK (TheStreet) -- Chipmos Technologies Bermuda (Nasdaq:IMOS) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and poor profit margins. Highlights from the ratings report include:
- CHIPMOS TECHNOLOGIES LTD's earnings per share declined by 37.5% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, CHIPMOS TECHNOLOGIES LTD swung to a loss, reporting -$0.02 versus $1.68 in the prior year.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 43.9% when compared to the same quarter one year ago, falling from -$4.10 million to -$5.90 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, CHIPMOS TECHNOLOGIES LTD's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for CHIPMOS TECHNOLOGIES LTD is currently extremely low, coming in at 6.10%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -4.00% is significantly below that of the industry average.
- IMOS, with its decline in revenue, underperformed when compared the industry average of 19.4%. Since the same quarter one year prior, revenues slightly dropped by 2.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
-- Written by a member of TheStreet Ratings Staff
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