Mellanox Technologies (MLNX) In A Perilous Reversal
- MLNX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.6 million.
- MLNX has traded 778,484 shares today.
- MLNX is down 3.1% today.
- MLNX was up 10.9% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in MLNX with the Ticky from Trade-Ideas. See the FREE profile for MLNX NOW at Trade-Ideas More details on MLNX: Mellanox Technologies, Ltd., a fabless semiconductor company, designs, manufactures, and sells interconnect products and solutions. Currently there are 4 analysts that rate Mellanox Technologies a buy, 1 analyst rates it a sell, and 5 rate it a hold. The average volume for Mellanox Technologies has been 497,900 shares per day over the past 30 days. Mellanox has a market cap of $1.6 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.37 and a short float of 11.4% with 6.24 days to cover. Shares are down 0.7% year-to-date as of the close of trading on Wednesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Mellanox Technologies as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 2.9%. Since the same quarter one year prior, revenues rose by 18.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- MLNX's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 4.08, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for MELLANOX TECHNOLOGIES LTD is currently very high, coming in at 74.70%. 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 -11.51% is in-line with the industry average.
- 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 Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 34.4% when compared to the same quarter one year ago, falling from -$8.46 million to -$11.37 million.
- 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 Semiconductors & Semiconductor Equipment industry and the overall market, MELLANOX TECHNOLOGIES LTD's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Mellanox Technologies Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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