Compuware Corporation (NASDAQ: CPWR) shares currently have a dividend yield of 4.80%. Compuware Corporation provides services, software, and practices for information technology (IT) organizations worldwide. The average volume for Compuware Corporation has been 1,237,400 shares per day over the past 30 days. Compuware Corporation has a market cap of $2.2 billion and is part of the computer software & services industry. Shares are down 3.9% year to date as of the close of trading on Monday. TheStreet Ratings rates Compuware Corporation as a hold. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, 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 deteriorating net income, disappointing return on equity and weak operating cash flow. Highlights from the ratings report include:
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- CPWR's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.94 is somewhat weak and could be cause for future problems.
- The gross profit margin for COMPUWARE CORP is rather high; currently it is at 69.70%. Regardless of CPWR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CPWR's net profit margin of -26.53% significantly underperformed when compared to the industry average.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Software industry and the overall market, COMPUWARE CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to $83.44 million or 21.24% 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.
- You can view the full Compuware Corporation Ratings Report.
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