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NEW YORK (TheStreet) -- Clicksoftware Technologies (CKSW) has been upgraded by TheStreet Ratings from Sell to Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CLICKSOFTWARE TECHNOLOGIES (CKSW) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 11.5%. Since the same quarter one year prior, revenues rose by 30.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- CKSW'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, CKSW has a quick ratio of 2.00, which demonstrates the ability of the company to cover short-term liquidity needs.
- CLICKSOFTWARE TECHNOLOGIES has improved earnings per share by 22.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CLICKSOFTWARE TECHNOLOGIES swung to a loss, reporting -$0.13 versus $0.23 in the prior year. This year, the market expects an improvement in earnings ($0.04 versus -$0.13).
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Software industry and the overall market, CLICKSOFTWARE TECHNOLOGIES's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to -$3.65 million or 44.61% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: CKSW Ratings Report