Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model
NEW YORK (
) has been downgraded by TheStreet Ratings from hold to sell. Among the areas we feel are negative, one of the most important has been unimpressive growth in net income over time.
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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 Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 698.9% when compared to the same quarter one year ago, falling from -$0.19 million to -$1.49 million.
- INTERMOLECULAR INC's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. 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, INTERMOLECULAR INC continued to lose money by earning -$0.01 versus -$0.63 in the prior year. This year, the market expects an improvement in earnings ($0.07 versus -$0.01).
- Despite currently having a low debt-to-equity ratio of 0.31, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that IMI's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.24 is high and demonstrates strong liquidity.
- Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, INTERMOLECULAR INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for INTERMOLECULAR INC is rather high; currently it is at 67.60%. 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 -8.52% is in-line with the industry average.
Intermolecular, Inc. develops and applies high productivity combinatorial (HPC) research and development technologies for the semiconductor and clean energy industries. Intermolecular has a market cap of $366.4 million and is part of the technology sector and electronics industry. Shares are down 7.9% year to date as of the close of trading on Tuesday.
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-- Written by a member of TheStreet Ratings Staff
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