NEW YORK (TheStreet) -- RiT Technologies
(RITT) rose 9.03% to $1.93 on Monday after the company announced that the Yuhang branch of China Agriculture Bank had deployed RiT's Enterprise PatchView, or EPV, an intelligent infrastructure management solution.
EPV is a plug-and-play solution that uses a Web-based interface, which does not require any supplemental software or other servers, to track a network's information technology assets and then report any unplanned changes in connectivity. The Yuhang branch of the China Agriculture Bank will use EPV to manage its copper and fiber-combined infrastructure, which contains approximately 4,000 ports.
TheStreet Ratings team rates RiT Technologies as a "sell" with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate RIT TECHNOLOGIES LTD (RITT) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- RITT'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 37.25%, 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.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Communications Equipment industry and the overall market, RIT TECHNOLOGIES LTD's return on equity significantly trails that of both the industry average and the S&P 500.
- RIT TECHNOLOGIES LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, RIT TECHNOLOGIES LTD reported poor results of -$1.92 versus -$0.88 in the prior year.
- 39.40% is the gross profit margin for RIT TECHNOLOGIES LTD which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -54.52% is in-line with the industry average.
- RITT's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.13, which illustrates the ability to avoid short-term cash problems.
- You can view the full analysis from the report here: RITT Ratings Report