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NEW YORK (TheStreet) -- Concur Technologies (CNQR) has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate CONCUR TECHNOLOGIES INC (CNQR) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- CNQR's revenue growth has slightly outpaced the industry average of 27.9%. Since the same quarter one year prior, revenues rose by 28.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, CNQR's share price has jumped by 33.62%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CNQR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- CNQR's debt-to-equity ratio of 0.86 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that CNQR's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.83 is high and demonstrates strong liquidity.
- CONCUR TECHNOLOGIES INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, CONCUR TECHNOLOGIES INC reported poor results of -$0.44 versus -$0.14 in the prior year. This year, the market expects an improvement in earnings ($0.92 versus -$0.44).
- The gross profit margin for CONCUR TECHNOLOGIES INC is currently very high, coming in at 72.08%. Regardless of CNQR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CNQR's net profit margin of -0.01% significantly underperformed when compared to the industry average.
- You can view the full analysis from the report here: CNQR Ratings Report