NEW YORK (
) has been upgraded by TheStreet Ratings from sell to hold. 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 and solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.
Highlights from the ratings report include:
- 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 Communications Equipment industry and the overall market, PROCERA NETWORKS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for PROCERA NETWORKS INC is rather high; currently it is at 61.80%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, PKT's net profit margin of 1.90% significantly trails the industry average.
- PKT 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 4.61, which clearly demonstrates the ability to cover short-term cash needs.
- PKT's very impressive revenue growth greatly exceeded the industry average of 10.0%. Since the same quarter one year prior, revenues leaped by 102.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
Procera Networks, Inc. provides network traffic awareness, analysis, and control solutions for broadband service providers. It offers intelligent policy enforcement solutions that enable mobile and broadband network operators and entities to manage private networks. Procera has a market cap of $129.5 million and is part of the
industry. Shares are up 92.3% year to date as of the close of trading on Friday.
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