NEW YORK (
-- Active Power
) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.
Highlights from the ratings report include:
- The gross profit margin for ACTIVE POWER INC is rather low; currently it is at 24.10%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -7.30% is significantly below that of the industry average.
- 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 Electrical Equipment industry and the overall market, ACTIVE POWER INC's return on equity significantly trails that of both the industry average and the S&P 500.
- ACTIVE POWER INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ACTIVE POWER INC continued to lose money by earning -$0.06 versus -$0.17 in the prior year. This year, the market expects an improvement in earnings ($0.01 versus -$0.06).
- ACPW'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. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.22, which illustrates the ability to avoid short-term cash problems.
- ACPW's revenue growth has slightly outpaced the industry average of 14.4%. Since the same quarter one year prior, revenues rose by 19.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
Active Power, Inc., together with its subsidiaries, designs, manufactures, and markets critical power quality solutions. Active has a market cap of $175.2 million and is part of the
industry. Shares are down 12.6% year to date as of the close of trading on Wednesday.
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