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 revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income 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:
- RDWR's revenue growth has slightly outpaced the industry average of 4.9%. Since the same quarter one year prior, revenues rose by 14.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- RDWR 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. To add to this, RDWR has a quick ratio of 2.07, which demonstrates the ability of the company to cover short-term liquidity needs.
- RADWARE LTD has improved earnings per share by 41.2% 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, RADWARE LTD turned its bottom line around by earning $0.44 versus -$0.31 in the prior year. This year, the market expects an improvement in earnings ($1.30 versus $0.44).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Communications Equipment industry. The net income increased by 45.2% when compared to the same quarter one year prior, rising from $3.72 million to $5.40 million.
- The gross profit margin for RADWARE LTD is currently very high, coming in at 79.80%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 12.80% trails the industry average.
Radware Ltd. provides application delivery solutions and network security solutions to banks, insurance companies, manufacturing and retail, government agencies, media companies, and service providers worldwide. The company has a P/E ratio of 44.2, above the average computer software & services industry P/E ratio of 39.3 and above the S&P 500 P/E ratio of 17.7. Radware has a market cap of $664.3 million and is part of the
industry. Shares are up 9.2% year to date as of the close of trading on Tuesday.
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