3 Hold-Rated Dividend Stocks Taking The Lead: VCI, CPWR, HTA
Compuware Corporation (NASDAQ: CPWR) shares currently have a dividend yield of 4.70%. Compuware Corporation provides services, software, and practices for information technology (IT) organizations worldwide. The average volume for Compuware Corporation has been 2,371,600 shares per day over the past 30 days. Compuware Corporation has a market cap of $2.3 billion and is part of the computer software & services industry. Shares are down 1.6% year to date as of the close of trading on Tuesday. TheStreet Ratings rates Compuware Corporation as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and increase in stock price during the past year. However, as a counter to these strengths, we find that the company's return on equity has been disappointing. Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 54.2% when compared to the same quarter one year prior, rising from $10.59 million to $16.34 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 6.7%. Since the same quarter one year prior, revenues slightly increased by 3.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- COMPUWARE CORP has improved earnings per share by 40.0% 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, COMPUWARE CORP swung to a loss, reporting -$0.08 versus $0.40 in the prior year. This year, the market expects an improvement in earnings ($0.48 versus -$0.08).
- The gross profit margin for COMPUWARE CORP is rather high; currently it is at 66.13%. 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 7.16% is significantly lower than the industry average.
- 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 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.
- You can view the full Compuware Corporation Ratings Report.
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