CryptoLogic Limited Stock Upgraded (CRYP)

NEW YORK ( TheStreet) -- CryptoLogic (Nasdaq: CRYP) 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, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.

Highlights from the ratings report include:
  • CRYP's revenue growth has slightly outpaced the industry average of 24.8%. Since the same quarter one year prior, revenues rose by 27.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CRYP 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. To add to this, CRYP has a quick ratio of 1.95, which demonstrates the ability of the company to cover short-term liquidity needs.
  • CRYPTOLOGIC LTD 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, CRYPTOLOGIC LTD turned its bottom line around by earning $0.47 versus -$1.57 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 746.5% when compared to the same quarter one year prior, rising from -$0.84 million to $5.43 million.
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CryptoLogic Limited, together with its subsidiaries, provides comprehensive solution comprising software, network operations, and administrative and marketing consulting services to licensed gaming operators that allow licensees to offer online casino and poker games. CryptoLogic has a market cap of $30.1 million and is part of the technology sector and computer software & services industry. Shares are up 5.5% year to date as of the close of trading on Friday.

You can view the full CryptoLogic Ratings Report or get investment ideas from our investment research center.
-- Written by a member of TheStreet RatingsStaff
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