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NEW YORK (TheStreet) -- Arrhythmia Research Tech (HRT) has been upgraded by TheStreet Ratings from Sell to Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate ARRHYTHMIA RESEARCH TECH (HRT) 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 robust revenue growth, solid stock price performance and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including poor profit margins and generally higher debt management risk."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- HRT's revenue growth has slightly outpaced the industry average of 20.7%. Since the same quarter one year prior, revenues rose by 27.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 123.80% and other important driving factors, this stock has surged by 109.51% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- 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 Health Care Technology industry and the overall market on the basis of return on equity, ARRHYTHMIA RESEARCH TECH has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- HRT's debt-to-equity ratio of 0.62 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that HRT's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.62 is low and demonstrates weak liquidity.
- The gross profit margin for ARRHYTHMIA RESEARCH TECH is currently lower than what is desirable, coming in at 25.31%. Regardless of HRT's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, HRT's net profit margin of 2.15% is significantly lower than the industry average.
- You can view the full analysis from the report here: HRT Ratings Report