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 solid stock price performance, increase in net income and good cash flow from operations. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.
Highlights from the ratings report include:
- Powered by its strong earnings growth of 100.00% and other important driving factors, this stock has surged by 40.95% over the past year, outperforming the rise in the S&P 500 Index during the same period. Although STRM had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Technology industry. The net income increased by 90.8% when compared to the same quarter one year prior, rising from -$0.08 million to -$0.01 million.
- Although STRM's debt-to-equity ratio of 0.20 is very low, it is currently higher than that of the industry average. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.48 is very weak and demonstrates a lack of ability to pay short-term obligations.
- The revenue fell significantly faster than the industry average of 47.9%. Since the same quarter one year prior, revenues fell by 11.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- 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 Health Care Technology industry and the overall market, STREAMLINE HEALTH SOLUTIONS's return on equity significantly trails that of both the industry average and the S&P 500.
Streamline Health Solutions, Inc. engages in the provision of health information technology solutions that enhance healthcare processes and information flows in a healthcare facility in the United States. Streamline Health has a market cap of $18.3 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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