NEW YORK ( TheStreet) -- Rudolph Technologies (Nasdaq: RTEC) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its robust 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.

Highlights from the ratings report include:
  • The gross profit margin for RUDOLPH TECHNOLOGIES INC is rather high; currently it is at 53.90%. Regardless of RTEC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 17.70% trails the industry average.
  • 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 Semiconductors & Semiconductor Equipment industry and the overall market on the basis of return on equity, RUDOLPH TECHNOLOGIES INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • RTEC 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 this, the company maintains a quick ratio of 4.91, which clearly demonstrates the ability to cover short-term cash needs.
  • RTEC's very impressive revenue growth greatly exceeded the industry average of 7.1%. Since the same quarter one year prior, revenues leaped by 86.7%. Growth in the company's revenue appears to have helped boost the earnings per share.

Rudolph Technologies, Inc. engages in the design, development, manufacture, and support of process control metrology, defect inspection, and data analysis systems used by semiconductor device manufacturers worldwide. The company has a P/E ratio of 11.4, equal to the average electronics industry P/E ratio and below the S&P 500 P/E ratio of 16. Rudolph has a market cap of $308.8 million and is part of the technology sector and electronics industry. Shares are up 18% year to date as of the close of trading on Tuesday.

You can view the full Rudolph Ratings Report or get investment ideas from our investment research center.
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