NEW YORK ( TheStreet) -- Insignia Systems (Nasdaq: ISIG) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year. Highlights from the ratings report include:
- ISIG has underperformed the S&P 500 Index, declining 20.04% from its price level of one year ago. 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.
- ISIG, with its decline in revenue, underperformed when compared the industry average of 11.4%. Since the same quarter one year prior, revenues fell by 15.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- 42.90% is the gross profit margin for INSIGNIA SYSTEMS INC which we consider to be strong. Regardless of ISIG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ISIG's net profit margin of 1089.00% significantly outperformed against the industry.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 12484.6% when compared to the same quarter one year prior, rising from -$0.44 million to $53.87 million.
- INSIGNIA SYSTEMS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, INSIGNIA SYSTEMS INC increased its bottom line by earning $0.44 versus $0.24 in the prior year.