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NEW YORK (TheStreet) -- Adept Technology (ADEP) has been downgraded by TheStreet Ratings from Hold to Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ADEPT TECHNOLOGY INC (ADEP) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been unimpressive growth in net income over time."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- 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 Machinery industry. The net income has significantly decreased by 10350.0% when compared to the same quarter one year ago, falling from $0.00 million to -$0.41 million.
- 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 Machinery industry and the overall market, ADEPT TECHNOLOGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
- ADEPT TECHNOLOGY INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. 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, ADEPT TECHNOLOGY INC continued to lose money by earning -$0.07 versus -$0.97 in the prior year. This year, the market expects an improvement in earnings ($0.03 versus -$0.07).
- 47.81% is the gross profit margin for ADEPT TECHNOLOGY INC 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 -2.87% is in-line with the industry average.
- Net operating cash flow has significantly increased by 337.66% to $1.24 million when compared to the same quarter last year. In addition, ADEPT TECHNOLOGY INC has also vastly surpassed the industry average cash flow growth rate of -24.48%.
- You can view the full analysis from the report here: ADEP Ratings Report
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