NEW YORK (
) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- MANT's revenue growth has slightly outpaced the industry average of 12.8%. Since the same quarter one year prior, revenues rose by 13.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- MANT's debt-to-equity ratio is very low at 0.19 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, MANT has a quick ratio of 1.61, which demonstrates the ability of the company to cover short-term liquidity needs.
- The net income growth from the same quarter one year ago has exceeded that of the IT Services industry average, but is less than that of the S&P 500. The net income increased by 13.3% when compared to the same quarter one year prior, going from $32.17 million to $36.44 million.
- The gross profit margin for MANTECH INTL CORP is currently extremely low, coming in at 14.40%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 4.80% trails that of the industry average.
- 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. In comparison to the other companies in the IT Services industry and the overall market, MANTECH INTL CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
ManTech International Corporation provides technologies and solutions for national security programs in the United States and internationally. The company has a P/E ratio of 9.7, equal to the average computer software & services industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Mantech International has a market cap of $834.7 million and is part of the
industry. Shares are down 19.4% year to date as of the close of trading on Friday.
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