NEW YORK ( TheStreet) -- Concur Technologies (Nasdaq: CNQR) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- CONCUR TECHNOLOGIES INC's earnings per share declined by 41.7% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, CONCUR TECHNOLOGIES INC reported lower earnings of $0.38 versus $0.49 in the prior year. This year, the market expects an improvement in earnings ($0.84 versus $0.38).
- Compared to its closing price of one year ago, CNQR's share price has jumped by 33.07%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- Despite currently having a low debt-to-equity ratio of 0.36, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 5.81 is very high and demonstrates very strong liquidity.
- The gross profit margin for CONCUR TECHNOLOGIES INC is currently very high, coming in at 77.90%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, CNQR's net profit margin of 4.60% significantly trails the industry average.
- The revenue growth came in higher than the industry average of 7.5%. Since the same quarter one year prior, revenues rose by 18.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.