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NEW YORK (
) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
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Highlights from the ratings report include:
- 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 Software industry. The net income has significantly decreased by 2398.8% when compared to the same quarter one year ago, falling from $0.09 million to -$1.95 million.
- 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 declined marginally to $3.73 million or 0.53% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- This stock has managed to decline in share value by 2.92% over the past twelve months. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- CLICKSOFTWARE TECHNOLOGIES's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse 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 ($0.07 versus -$0.13).
ClickSoftware Technologies Ltd. provides software products and solutions for workforce management and optimization for mobile and in-house resources primarily in North America, Europe, Israel, and the Asia Pacific region. ClickSoftware has a market cap of $238.5 million and is part of the technology sector and internet industry. Shares are down 2.1% year to date as of the close of trading on Friday.
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