Oplink Communications Inc. Stock Downgraded (OPLK)
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- OPLK's revenue growth trails the industry average of 15.7%. Since the same quarter one year prior, revenues slightly increased by 0.3%. 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.
- OPLK has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 7.34, which clearly demonstrates the ability to cover short-term cash needs.
- 35.30% is the gross profit margin for OPLINK COMMUNICATIONS INC which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, OPLK's net profit margin of 4.64% significantly 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 Communications Equipment industry. The net income has significantly decreased by 28.2% when compared to the same quarter one year ago, falling from $2.86 million to $2.05 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. Compared to other companies in the Communications Equipment industry and the overall market, OPLINK COMMUNICATIONS INC's return on equity significantly trails that of both the industry average and the S&P 500.
-- Written by a member of TheStreet Ratings Staff
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