NEW YORK ( TheStreet) -- BroadVision (Nasdaq: BVSN) has been downgraded by TheStreet Ratings from hold to sell. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity. Highlights from the ratings report include:
- The gross profit margin for BROADVISION INC is rather high; currently it is at 66.00%. Regardless of BVSN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BVSN's net profit margin of -7.70% significantly underperformed when compared to the industry average.
- The revenue fell significantly faster than the industry average of 21.1%. Since the same quarter one year prior, revenues fell by 12.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- BROADVISION INC reported significant earnings per share improvement in the most recent quarter compared to 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, BROADVISION INC swung to a loss, reporting -$0.65 versus $0.85 in the prior year.
- In its most recent trading session, BVSN has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Regardless of the rise in share value over the previous year, we feel that the risks involved in investing in this stock do not compensate for any future upside potential.
- 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 Internet Software & Services industry and the overall market, BROADVISION INC's return on equity significantly trails that of both the industry average and the S&P 500.