NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and impressive record of earnings per share growth. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- COOL's very impressive revenue growth greatly exceeded the industry average of 4.6%. Since the same quarter one year prior, revenues leaped by 60.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- COOL has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, COOL has a quick ratio of 1.84, which demonstrates the ability of the company to cover short-term liquidity needs.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Software industry and the overall market, MAJESCO ENTERTAINMENT CO's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Powered by its strong earnings growth of 225.00% and other important driving factors, this stock has surged by 370.58% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, COOL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- MAJESCO ENTERTAINMENT CO reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, MAJESCO ENTERTAINMENT CO continued to lose money by earning -$0.02 versus -$0.23 in the prior year. This year, the market expects an improvement in earnings ($0.40 versus -$0.02).
Majesco Entertainment Company provides interactive entertainment products primarily in the United States and Europe. It offers video game software and other digital entertainment products. The company has a P/E ratio of 10.6, below the average computer software & services industry P/E ratio of 12.8 and below the S&P 500 P/E ratio of 17.7. Majesco Entertainment has a market cap of $126.9 million and is part of the
industry. Shares are up 315.6% year to date as of the close of trading on Thursday.
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