Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Demandware as such a stock due to the following factors:
- DWRE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.6 million.
- DWRE has traded 395,376 shares today.
- DWRE is trading at a new lifetime high.
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More details on DWRE:
Demandware, Inc. provides software-as-a-service e-commerce solutions that enable companies to design, implement, and manage their own customized e-commerce sites, including Websites, mobile applications, and other digital storefronts. Currently there are 7 analysts that rate Demandware a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Demandware has been 301,200 shares per day over the past 30 days. Demandware has a market cap of $1.4 billion and is part of the technology sector and computer software & services industry. Shares are up 66.3% year to date as of the close of trading on Friday.
rates Demandware as a
. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and disappointing return on equity.
Highlights from the ratings report include:
- DEMANDWARE INC's earnings per share declined by 47.4% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, DEMANDWARE INC swung to a loss, reporting -$0.29 versus $0.02 in the prior year. For the next year, the market is expecting a contraction of 10.3% in earnings (-$0.32 versus -$0.29).
- 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 Internet Software & Services industry. The net income has significantly decreased by 50.1% when compared to the same quarter one year ago, falling from -$5.63 million to -$8.46 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 Internet Software & Services industry and the overall market, DEMANDWARE INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for DEMANDWARE INC is currently very high, coming in at 76.62%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -36.43% is in-line with the industry average.
- Net operating cash flow has significantly increased by 51.15% to $4.11 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 27.13%.
- You can view the full Demandware Ratings Report.