NEW YORK (TheStreet) -- Shares of CalAmp Corp. (CAMP - Get Report) are higher by 4.52% to $18.72 in mid-afternoon trading on Tuesday, after the company announced it entered into an expanded supply agreement with the privately held Masternaut Limited, a U.K.-based leading mobile resource management services company.
CalAmp develops and markets wireless technology solutions that deliver data, voice, and video for critical network communications and other applications.
The company said it signed the supply agreement in order to broaden its wireless product offerings, and will be supplying Masternaut with advanced telematics devices to enable trailer, heavy equipment and industrial machinery tracking with Masternaut's Connect telematics platform.
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Separately, TheStreet Ratings team rates CALAMP CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:"We rate CALAMP CORP (CAMP) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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, increase in net income, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity." Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 3.1%. Since the same quarter one year prior, revenues slightly increased by 9.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- CAMP's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, CAMP has a quick ratio of 1.77, which demonstrates the ability of the company to cover short-term liquidity needs.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Communications Equipment industry. The net income increased by 59.8% when compared to the same quarter one year prior, rising from $1.69 million to $2.69 million.
- Net operating cash flow has increased to $7.33 million or 26.76% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 5.10%.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: CAMP Ratings Report