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 area that we feel has been the company's primary weakness has been its relatively poor performance when compared with the S&P 500 during the past year.
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Highlights from the ratings report include:
- In its most recent trading session, VOCS has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Internet Software & Services industry and the overall market, VOCUS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- VOCS's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that VOCS's debt-to-equity ratio is low, the quick ratio, which is currently 0.63, displays a potential problem in covering short-term cash needs.
- VOCUS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, VOCUS INC reported poor results of -$1.23 versus -$0.78 in the prior year. This year, the market expects an improvement in earnings ($0.52 versus -$1.23).
- The gross profit margin for VOCUS INC is currently very high, coming in at 86.00%. 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 -7.92% is in-line with the industry average.
Vocus, Inc. provides cloud marketing software that enables businesses attract, engage, and retain customers in the United States and Europe. Vocus has a market cap of $289.2 million and is part of the technology sector and internet industry. Shares are down 23.1% year to date as of the close of trading on Wednesday.
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-- Written by a member of TheStreet Ratings Staff
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