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 generally disappointing historical performance in the stock itself and unimpressive growth in net income.
Highlights from the ratings report include:
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 49.18%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 300.00% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
- 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 224.1% when compared to the same quarter one year ago, falling from $0.58 million to -$0.72 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Internet Software & Services industry and the overall market, MARCHEX INC's return on equity significantly trails that of both the industry average and the S&P 500.
- 39.50% is the gross profit margin for MARCHEX INC which we consider to be strong. Regardless of MCHX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MCHX's net profit margin of -2.00% significantly underperformed when compared to the industry average.
- MARCHEX 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, MARCHEX INC turned its bottom line around by earning $0.06 versus -$0.10 in the prior year. This year, the market expects an improvement in earnings ($0.23 versus $0.06).
Marchex, Inc. operates as a digital call advertising and small business marketing company primarily in the United States. Its products, services, and technologies enable advertisers to reach consumers through mobile, online, and offline sources. The company has a P/E ratio of 42.8, equal to the average media industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Marchex has a market cap of $94.4 million and is part of the
industry. Shares are down 45.6% year to date as of the close of trading on Friday.
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-- Written by a member of TheStreet Ratings Staff