NEW YORK (
-- ClearOne Communications Corporation
) has been upgraded by TheStreet Ratings from hold to buy. 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, solid stock price performance, attractive valuation levels and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
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 Communications Equipment industry. The net income increased by 303.2% when compared to the same quarter one year prior, rising from -$0.40 million to $0.82 million.
- Powered by its strong earnings growth of 325.00% and other important driving factors, this stock has surged by 50.48% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CLRO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- CLRO 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. To add to this, CLRO has a quick ratio of 1.90, which demonstrates the ability of the company to cover short-term liquidity needs.
- CLRO's very impressive revenue growth greatly exceeded the industry average of 0.3%. Since the same quarter one year prior, revenues leaped by 78.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
ClearOne Communications, Inc. operates as a communications solutions company that develops and sells audio conferencing, collaboration, streaming media, and connectivity systems and other related products for audio, video, and Web applications. The company has a P/E ratio of 73.2, above the average telecommunications industry P/E ratio of 17.6 and above the S&P 500 P/E ratio of 17.5. ClearOne has a market cap of $39.2 million and is part of the
industry. Shares are up 22.2% year to date as of the close of trading on Thursday.
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