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 largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.
Highlights from the ratings report include:
- RVSN 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 2.83, which clearly demonstrates the ability to cover short-term cash needs.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- The gross profit margin for RADVISION LTD is currently very high, coming in at 71.10%. Regardless of RVSN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, RVSN's net profit margin of -20.50% significantly underperformed when compared to the industry average.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Internet Software & Services industry and the overall market, RADVISION LTD's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$1.61 million or 196.11% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
RADVISION Ltd. engages in the design, development, and supply of various products and technologies that enable real-time voice, video, and data communications over the Internet and other networks based on the Internet Protocol (IP). Radvision has a market cap of $170 million and is part of the
industry. Shares are up 38.5% year to date as of the close of trading on Tuesday.
You can view the full
or get investment ideas from our
-- Written by a member of TheStreet RatingsStaff