Zagg Inc. Stock Downgraded (ZAGG)
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- The revenue growth greatly exceeded the industry average of 21.5%. Since the same quarter one year prior, revenues rose by 29.6%. 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.
- The current debt-to-equity ratio, 0.37, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, ZAGG has a quick ratio of 1.79, which demonstrates the ability of the company to cover short-term liquidity needs.
- 44.80% is the gross profit margin for ZAGG INC which we consider to be strong. Regardless of ZAGG'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 0.22% trails the industry average.
- 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 Household Durables industry. The net income has significantly decreased by 98.0% when compared to the same quarter one year ago, falling from $9.95 million to $0.19 million.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Household Durables industry and the overall market, ZAGG INC's return on equity is below that of both the industry average and the S&P 500.
-- Written by a member of TheStreet Ratings Staff
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