Actuate Corporation Stock Downgraded (BIRT)
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- Despite its growing revenue, the company underperformed as compared with the industry average of 2.5%. Since the same quarter one year prior, revenues slightly increased by 0.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- BIRT's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, BIRT has a quick ratio of 1.71, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for ACTUATE CORP is currently very high, coming in at 86.90%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, BIRT's net profit margin of 2.13% significantly trails the industry average.
- Net operating cash flow has decreased to $3.76 million or 45.80% 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.
- The share price of ACTUATE CORP has not done very well: it is down 16.05% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
-- Written by a member of TheStreet Ratings Staff
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