NEW YORK (TheStreet) -- KEYW Holding (KEYW - Get Report) shares are up 4.5% to $12.65 in after-hours trading on Thursday after announcing a collaboration with Oracle's (ORCL - Get Report) National Security Group on advanced solutions for mission applications and advanced analytic developments for KEYW's government customers.
"We're excited about the possible efficiencies, particularly in the ability to lower the footprint of certain datacenters in some cases by an order of magnitude... The goal of the collaboration is to provide active defense capability to Oracle's NSG facility in Reston, VA in the near term for demonstration to commercial and federal customers," said CEO Len Moodispaw.
TheStreet Ratings team rates KEYW HOLDING CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate KEYW HOLDING CORP (KEYW) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its expanding profit margins and largely solid financial position with reasonable debt levels by most measures. 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 analysis by TheStreet Ratings Team goes as follows:
- 36.12% is the gross profit margin for KEYW HOLDING CORP which we consider to be strong. 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 -4.82% is in-line with the industry average.
- KEYW's debt-to-equity ratio is very low at 0.28 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.
- KEYW, with its decline in revenue, underperformed when compared the industry average of 3.2%. Since the same quarter one year prior, revenues fell by 18.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Aerospace & Defense industry and the overall market, KEYW HOLDING CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$1.66 million or 1269.01% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: KEYW Ratings Report