Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link
NEW YORK (
) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.
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Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 56.2% when compared to the same quarter one year prior, rising from -$2.49 million to -$1.09 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 22.5%. Since the same quarter one year prior, revenues rose by 13.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The gross profit margin for BROADVISION INC is currently very high, coming in at 73.82%. 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 -26.76% is in-line with the industry average.
- BROADVISION INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, BROADVISION INC continued to lose money by earning -$1.09 versus -$1.19 in the prior year.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Internet Software & Services industry and the overall market, BROADVISION INC's return on equity significantly trails that of both the industry average and the S&P 500.
BroadVision, Inc. develops, markets, and supports enterprise portal applications. The company's applications enable companies to unify their e-business infrastructure and conduct interactions and transactions with employees, partners, and customers through a personalized self-service model. BroadVision has a market cap of $48 million and is part of the technology sector and internet industry. Shares are up 13.9% year to date as of the close of trading on Wednesday.
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