NEW YORK (TheStreet) -- CUI Global (Nasdaq:CUI) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and weak operating cash flow.
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- This stock has managed to rise its share value by 29.44% over the past twelve months. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- Although CUI's debt-to-equity ratio of 0.30 is very low, it is currently higher than that of the industry average. To add to this, CUI has a quick ratio of 2.01, which demonstrates the ability of the company to cover short-term liquidity needs.
- CUI GLOBAL INC's earnings have gone downhill when comparing its most recently reported quarter 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, CUI GLOBAL INC turned its bottom line around by earning $0.00 versus -$1.20 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 Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 1052.7% when compared to the same quarter one year ago, falling from -$0.09 million to -$1.07 million.
- Net operating cash flow has decreased to $0.37 million or 37.50% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
-- Written by a member of TheStreet Ratings Staff
TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
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