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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 growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- CKSW's revenue growth has slightly outpaced the industry average of 8.4%. Since the same quarter one year prior, revenues rose by 12.4%. 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 0.00 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 2.13, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for CLICKSOFTWARE TECHNOLOGIES is rather high; currently it is at 61.64%. Regardless of CKSW's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CKSW's net profit margin of 7.56% is significantly lower than the industry average.
- CKSW has underperformed the S&P 500 Index, declining 8.70% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- Net operating cash flow has significantly decreased to $0.63 million or 67.52% 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
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