3 Internet Stocks Moving The Industry Upward
- 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 Internet Software & Services industry. The net income has significantly decreased by 51.4% when compared to the same quarter one year ago, falling from -$2.09 million to -$3.17 million.
- The gross profit margin for SELECTICA INC is currently lower than what is desirable, coming in at 34.43%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -89.46% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to -$1.68 million or 168.83% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The debt-to-equity ratio of 1.03 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, SLTC's quick ratio is somewhat strong at 1.38, demonstrating the ability to handle short-term liquidity needs.
- SLTC'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 34.89%, 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.
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