NEW YORK ( TheStreet) -- Unify Corporation (Nasdaq: UNFY) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, feeble growth in its earnings per share and unimpressive growth in net income.

Highlights from the ratings report include:
  • UNFY's debt-to-equity ratio of 0.80 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.13 is sturdy.
  • 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 Internet Software & Services industry and the overall market, UNIFY CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet Software & Services industry. The net income has significantly decreased by 119.4% when compared to the same quarter one year ago, falling from $1.06 million to -$0.21 million.
  • UNIFY CORP has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, UNIFY CORP swung to a loss, reporting -$0.24 versus $0.33 in the prior year.
  • The share price of UNIFY CORP has not done very well: it is down 17.96% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.

Unify Corporation provides application development, data management, migration, and archiving software solutions worldwide. The company has a P/E ratio of 12.8, below the average computer software & services industry P/E ratio of 40 and below the S&P 500 P/E ratio of 17.2. Unify has a market cap of $46.6 million and is part of the technology sector and computer software & services industry. Shares are down 8.6% year to date as of the close of trading on Friday.

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