NEW YORK ( TheStreet) -- Ramtron International Corporation (Nasdaq: RMTR) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself. Highlights from the ratings report include:
- The revenue fell significantly faster than the industry average of 7.4%. Since the same quarter one year prior, revenues fell by 32.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- RAMTRON INTERNATIONAL 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. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, RAMTRON INTERNATIONAL CORP turned its bottom line around by earning $0.06 versus -$0.21 in the prior year.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 27.32%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 550.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, RAMTRON INTERNATIONAL 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 Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 673.0% when compared to the same quarter one year ago, falling from $0.42 million to -$2.38 million.