EnerNOC shares continued to rise following the energy intelligence software provider's acquisition of EnTech, the London based utility bill software provider.
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"EnTech has impressive global reach. Its software product is the global UBM solution of over 50 enterprises. Eight of the Fortune 50, including the largest companies in the world in telecommunications, consumer products, banking, and auto manufacturing rely on EnTech's UBM software," said EnerNOC CEO Tim Healy.
Financial terms of the deal were not disclosed, but it was noted that EnTech's annual revenue is about $10 million per year.
EnerNOC is scheduled to release first quarter financial results on May 8.
TheStreet Ratings team rates ENERNOC INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate ENERNOC INC (ENOC) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- The net income growth from the same quarter one year ago has significantly exceeded that of the Commercial Services & Supplies industry average, but is less than that of the S&P 500. The net income increased by 22.9% when compared to the same quarter one year prior, going from -$25.79 million to -$19.88 million.
- The gross profit margin for ENERNOC INC is rather high; currently it is at 59.56%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -55.24% is in-line with the industry average.
- ENERNOC INC has improved earnings per share by 26.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, ENERNOC INC turned its bottom line around by earning $0.64 versus -$0.91 in the prior year. For the next year, the market is expecting a contraction of 25.0% in earnings ($0.48 versus $0.64).
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Commercial Services & Supplies industry and the overall market, ENERNOC INC's return on equity is below that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: ENOC Ratings Report