NEW YORK (
) has been downgraded by TheStreet Ratings from hold to sell. Among the areas we feel are negative, one of the most important has been unimpressive growth in net income over time.
Highlights from the ratings report include:
- 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 decreased by 22.7% when compared to the same quarter one year ago, dropping from -$1.88 million to -$2.31 million.
- Despite currently having a low debt-to-equity ratio of 0.52, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 10.26 is very high and demonstrates very strong liquidity.
- Compared to other companies in the Internet Software & Services industry and the overall market, QUEPASA CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- Investors have driven up the company's shares by 25.40% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the future course of this stock, we feel that the risks involved in investing in QPSA do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
- QUEPASA CORP has improved earnings per share by 6.7% 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. During the past fiscal year, QUEPASA CORP continued to lose money by earning -$0.53 versus -$0.84 in the prior year.
Quepasa Corp., through its Web site, Quepasa.com, operates as an online social community for young Hispanics. Quepasa has a market cap of $87.7 million and is part of the
industry. Shares are down 59.9% year to date as of the close of trading on Friday.
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