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 robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. 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:
- CCIH's very impressive revenue growth exceeded the industry average of 24.8%. Since the same quarter one year prior, revenues leaped by 53.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- CCIH's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, CCIH has a quick ratio of 2.24, which demonstrates the ability of the company to cover short-term liquidity needs.
- CCIH's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 52.86%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter.
- Compared to other companies in the Internet Software & Services industry and the overall market, CHINACACHE INTL HLDGS -ADR's return on equity significantly trails that of both the industry average and the S&P 500.
- 41.20% is the gross profit margin for CHINACACHE INTL HLDGS -ADR which we consider to be strong. Regardless of CCIH's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CCIH's net profit margin of 2.10% is significantly lower than the same period one year prior.
ChinaCache International Holdings Ltd. provides Internet content and application delivery services to businesses, government agencies, and enterprises in China. ChinaCache International has a market cap of $162.1 million and is part of the
industry. Shares are up 101.5% year to date as of the close of trading on Tuesday.
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-- Written by a member of TheStreet RatingsStaff