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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

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NEW YORK (

TheStreet

)

-- Chipmos Technologies Bermuda

(Nasdaq:

IMOS

) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and poor profit margins.

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Highlights from the ratings report include:

  • Compared to its closing price of one year ago, IMOS's share price has jumped by 117.32%, exceeding the performance of the broader market during that same time frame. 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.
  • Net operating cash flow has remained constant at $63.60 million with no significant change when compared to the same quarter last year. Along with maintaining stable cash flow from operations, the firm exceeded the industry average cash flow growth rate of -9.92%.
  • The gross profit margin for CHIPMOS TECHNOLOGIES LTD is rather low; currently it is at 18.96%. Regardless of IMOS's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, IMOS's net profit margin of 3.43% is significantly lower than the industry average.
  • 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 Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 32.9% when compared to the same quarter one year ago, falling from $8.35 million to $5.60 million.

ChipMOS TECHNOLOGIES (Bermuda) LTD., through its subsidiaries, provides semiconductor testing and assembly services for LCD and other flat-panel display driver semiconductors, and memory and logic/mixed-signal products. Chipmos Technologies Bermuda has a market cap of $774.7 million and is part of the technology sector and electronics industry. Shares are up 19.6% year to date as of the close of trading on Monday.

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Chipmos Technologies Bermuda Ratings Report

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.