Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model
NEW YORK (
) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, unimpressive growth in net income and weak operating cash flow.
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Highlights from the ratings report include:
- The share price of RESPONSYS INC has not done very well: it is down 13.92% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
- 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 significantly decreased by 99.4% when compared to the same quarter one year ago, falling from $2.48 million to $0.02 million.
- Net operating cash flow has decreased to $4.31 million or 21.37% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- The gross profit margin for RESPONSYS INC is rather high; currently it is at 59.20%. Regardless of MKTG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MKTG's net profit margin of 0.00% is significantly lower than the same period one year prior.
- RESPONSYS INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This year, the market expects an improvement in earnings ($0.22 versus $0.18).
Responsys, Inc. provides on-demand software and professional services primarily in North America, the Asia Pacific, and Europe. The company has a P/E ratio of 91.9, above the average computer software & services industry P/E ratio of 54.1 and above the S&P 500 P/E ratio of 17.7. Responsys has a market cap of $445.8 million and is part of the technology sector and computer software & services industry. Shares are up 3.4% year to date as of the close of trading on Tuesday.
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-- Written by a member of TheStreet Ratings Staff
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