NEW YORK ( TheStreet) -- Identive Group (Nasdaq: INVE) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. 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:
- 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. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, IDENTIVE GROUP INC's return on equity significantly trails that of both the industry average and the S&P 500.
- INVE's debt-to-equity ratio is very low at 0.04 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.89 is somewhat weak and could be cause for future problems.
- 46.90% is the gross profit margin for IDENTIVE GROUP INC which we consider to be strong. 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 -2.70% trails the industry average.
- Powered by its strong earnings growth of 94.11% and other important driving factors, this stock has surged by 71.27% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- INVE's very impressive revenue growth greatly exceeded the industry average of 47.3%. Since the same quarter one year prior, revenues leaped by 134.4%. Growth in the company's revenue appears to have helped boost the earnings per share.