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NEW YORK (TheStreet) -- Nice Systems (NICE) - Get Report has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate NICE SYSTEMS LTD (NICE) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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 expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite its growing revenue, the company underperformed as compared with the industry average of 11.5%. Since the same quarter one year prior, revenues slightly increased by 6.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- NICE 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. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.99 is somewhat weak and could be cause for future problems.
- NICE SYSTEMS LTD's earnings per share declined by 37.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, NICE SYSTEMS LTD reported lower earnings of $0.89 versus $1.09 in the prior year. This year, the market expects an improvement in earnings ($2.71 versus $0.89).
- The gross profit margin for NICE SYSTEMS LTD is rather high; currently it is at 66.74%. Regardless of NICE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, NICE's net profit margin of 4.34% is significantly lower than the industry average.
- Net operating cash flow has decreased to $25.95 million or 26.17% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: NICE Ratings Report