NEW YORK ( TheStreet) -- CalAmp Corporation (Nasdaq: CAMP) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including generally poor debt management and poor profit margins.

Highlights from the ratings report include:
  • Despite currently having a low debt-to-equity ratio of 0.53, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that CAMP's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.66 is low and demonstrates weak liquidity.
  • The gross profit margin for CALAMP CORP is currently lower than what is desirable, coming in at 28.30%. Regardless of CAMP's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 1.50% trails the industry average.
  • Powered by its strong earnings growth of 122.22% and other important driving factors, this stock has surged by 42.25% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • The revenue growth came in higher than the industry average of 7.8%. Since the same quarter one year prior, revenues rose by 31.1%. Growth in the company's revenue appears to have helped boost the earnings per share.

CalAmp Corp. develops and markets wireless communications solutions that deliver data, voice, and video for critical networked communications and other applications in the United States. It operates in two segments, Wireless DataCom and Satellite. CalAmp has a market cap of $84.4 million and is part of the technology sector and telecommunications industry. Shares are down 3.5% year to date as of the close of trading on Friday.

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