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NEW YORK (TheStreet) -- Aware (AWRE) - Get Aware, Inc. Report has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AWARE INC (AWRE) a BUY. This is driven by some important positives, 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 largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- AWRE has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign.
- The gross profit margin for AWARE INC is currently very high, coming in at 82.73%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, AWRE's net profit margin of 5.54% significantly trails the industry average.
- AWARE INC's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, AWARE INC increased its bottom line by earning $0.20 versus $0.16 in the prior year.
- The revenue fell significantly faster than the industry average of 8.2%. Since the same quarter one year prior, revenues fell by 23.6%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- You can view the full analysis from the report here: AWRE Ratings Report