Alteva (NASDAQ: ALTV) shares currently have a dividend yield of 11.40%. Alteva, Inc. provides cloud-based unified communications solutions for small, medium, and enterprise businesses. The average volume for Alteva has been 17,700 shares per day over the past 30 days. Alteva has a market cap of $58.5 million and is part of the telecommunications industry. Shares are down 12% year to date as of the close of trading on Wednesday. TheStreet Ratings rates Alteva as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity and generally disappointing historical performance in the stock itself. Highlights from the ratings report include:
- The debt-to-equity ratio of 1.18 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, ALTV has a quick ratio of 0.61, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- 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 Diversified Telecommunication Services industry and the overall market, ALTEVA's return on equity significantly trails that of both the industry average and the S&P 500.
- ALTV's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 29.33%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- ALTEVA has improved earnings per share by 31.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ALTEVA reported poor results of -$1.67 versus -$0.54 in the prior year. This year, the market expects an improvement in earnings ($0.09 versus -$1.67).
- The gross profit margin for ALTEVA is rather high; currently it is at 51.05%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -10.76% is in-line with the industry average.
- You can view the full Alteva Ratings Report.
- Our dividend calendar.
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