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 growth in earnings per share, compelling growth in net income, 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 ratings report include:
- PDF SOLUTIONS INC 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 two years. We feel that this trend should continue. During the past fiscal year, PDF SOLUTIONS INC increased its bottom line by earning $0.06 versus $0.00 in the prior year. This year, the market expects an improvement in earnings ($0.70 versus $0.06).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 550.1% when compared to the same quarter one year prior, rising from $0.33 million to $2.11 million.
- PDFS's revenue growth trails the industry average of 26.5%. Since the same quarter one year prior, revenues slightly increased by 8.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- PDFS 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. Along with this, the company maintains a quick ratio of 5.00, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for PDF SOLUTIONS INC is rather high; currently it is at 53.00%. Regardless of PDFS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PDFS's net profit margin of 12.00% is significantly lower than the same period one year prior.
PDF Solutions, Inc. provides infrastructure technologies and services for the design and manufacture of integrated circuits (IC) in Asia, the United States, and Europe. The company has a P/E ratio of 25.9, below the average computer software & services industry P/E ratio of 630 and above the S&P 500 P/E ratio of 17.7. PDF has a market cap of $178.1 million and is part of the
industry. Shares are down 6.2% year to date as of the close of trading on Wednesday.
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-- Written by a member of TheStreet RatingsStaff