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 and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- Net operating cash flow has significantly increased by 139.77% to $2.35 million when compared to the same quarter last year. Despite an increase in cash flow, INTERMEC INC's cash flow growth rate is still lower than the industry average growth rate of 160.34%.
- INTERMEC INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, INTERMEC INC continued to lose money by earning -$0.08 versus -$0.18 in the prior year. This year, the market expects an improvement in earnings ($0.41 versus -$0.08).
- In its most recent trading session, IN has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. 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.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Computers & Peripherals industry and the overall market, INTERMEC INC's return on equity significantly trails that of both the industry average and the S&P 500.
- 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 Computers & Peripherals industry. The net income has significantly decreased by 66.7% when compared to the same quarter one year ago, falling from -$3.65 million to -$6.08 million.
Intermec, Inc. designs, develops, integrates, sells, resells, and repairs wired and wireless automated identification and data collection (AIDC) products and related services worldwide. Intermec has a market cap of $688.7 million and is part of the
industry. Shares are down 7.8% year to date as of the previous trading day's close.
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