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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 revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.
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Highlights from the ratings report include:
- TOF's revenue growth has slightly outpaced the industry average of 2.6%. Since the same quarter one year prior, revenues rose by 12.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- TOF 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 the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.40, which illustrates the ability to avoid short-term cash problems.
- TOFUTTI BRANDS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. Stable Earnings per share over the past year indicate the company has sound management over its earnings and share float. During the past fiscal year, TOFUTTI BRANDS INC reported poor results of -$0.17 versus -$0.16 in the prior year.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Food Products industry and the overall market, TOFUTTI BRANDS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for TOFUTTI BRANDS INC is currently lower than what is desirable, coming in at 33.45%. Regardless of TOF's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 2.74% trails the industry average.
Tofutti Brands Inc. engages in the development, production, and marketing of nondairy frozen desserts and other food products under the TOFUTTI brand name in the United States and internationally. Tofutti has a market cap of $22.6 million and is part of the consumer goods sector and food & beverage industry. Shares are up 28.4% year to date as of the close of trading on Wednesday.
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