Cache Inc. Stock Downgraded (CACH)
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- 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 Specialty Retail industry. The net income has significantly decreased by 63.2% when compared to the same quarter one year ago, falling from $2.80 million to $1.03 million.
- CACHE INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, CACHE INC turned its bottom line around by earning $0.17 versus -$1.75 in the prior year. For the next year, the market is expecting a contraction of 323.5% in earnings (-$0.38 versus $0.17).
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Specialty Retail industry and the overall market, CACHE INC's return on equity significantly trails that of both the industry average and the S&P 500.
- 42.80% is the gross profit margin for CACHE INC which we consider to be strong. Regardless of CACH'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 1.70% trails the industry average.
- Compared to where it was trading one year ago, CACH is down 45.26% to its most recent closing price of 2.74. Looking ahead, our view is that this stock still does not have good upside potential and may even suffer further declines.
-- Written by a member of TheStreet Ratings Staff
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