NEW YORK ( TheStreet) -- Qlik Technologies (Nasdaq: QLIK) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing. Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 0.2%. Since the same quarter one year prior, revenues rose by 32.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- QLIK's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, QLIK has a quick ratio of 2.45, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for QLIK TECHNOLOGIES INC is currently very high, coming in at 92.50%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, QLIK's net profit margin of 14.50% significantly trails the industry average.
- QLIK TECHNOLOGIES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, QLIK TECHNOLOGIES INC reported lower earnings of $0.09 versus $0.15 in the prior year. This year, the market expects an improvement in earnings ($0.44 versus $0.09).
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Software industry and the overall market, QLIK TECHNOLOGIES INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
-- Written by a member of TheStreet RatingsStaff