NEW YORK ( TheStreet) -- Analysts International (Nasdaq: ANLY) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its 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 profit margins have been poor overall. Highlights from the ratings report include:
- ANLY's revenue growth has slightly outpaced the industry average of 0.2%. Since the same quarter one year prior, revenues slightly increased by 6.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- ANLY has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.11, which clearly demonstrates the ability to cover short-term cash needs.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the IT Services industry and the overall market on the basis of return on equity, ANALYSTS INTERNATIONAL CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- The gross profit margin for ANALYSTS INTERNATIONAL CORP is currently lower than what is desirable, coming in at 25.40%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 4.70% significantly trails the industry average.
-- Written by a member of TheStreet Ratings Staff