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 buy to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and feeble growth in the company's earnings per share.
- ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.
Highlights from the ratings report include:
- STRM's revenue growth has slightly outpaced the industry average of 18.4%. Since the same quarter one year prior, revenues rose by 21.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 64.39% to $1.54 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 46.05%.
- The gross profit margin for STREAMLINE HEALTH SOLUTIONS is rather high; currently it is at 68.80%. 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 -9.20% is in-line with the industry average.
- STREAMLINE HEALTH SOLUTIONS's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, STREAMLINE HEALTH SOLUTIONS turned its bottom line around by earning $0.00 versus -$0.32 in the prior year. This year, the market expects a decline in earnings from $0.00 to -$0.05.
- 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 Health Care Technology industry. The net income has significantly decreased by 6528.6% when compared to the same quarter one year ago, falling from -$0.01 million to -$0.46 million.
Streamline Health Solutions, Inc. provides workflow and document management technology solutions that enhance efficiencies and business processes for hospitals and physician groups in North America. The company has a P/E ratio of 35, below the average computer software & services industry P/E ratio of 52.5 and above the S&P 500 P/E ratio of 17.7. Streamline Health has a market cap of $44.4 million and is part of the
industry. Shares are up 156.4% year to date as of the close of trading on Friday.
You can view the full
or get investment ideas from our
-- Written by a member of TheStreet Ratings Staff
FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge!
Free download now