NEW YORK ( TheStreet) -- Calamos Asset Management (Nasdaq: CLMS) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Highlights from the ratings report include:
- The current debt-to-equity ratio, 0.49, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 2.53, which clearly demonstrates the ability to cover short-term cash needs.
- Despite the weak revenue results, CLMS has outperformed against the industry average of 30.3%. Since the same quarter one year prior, revenues slightly dropped by 4.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- CALAMOS ASSET MANAGEMENT INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, CALAMOS ASSET MANAGEMENT INC reported lower earnings of $0.77 versus $0.98 in the prior year. This year, the market expects an improvement in earnings ($0.87 versus $0.77).
- The gross profit margin for CALAMOS ASSET MANAGEMENT INC is rather high; currently it is at 56.70%. Regardless of CLMS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CLMS's net profit margin of -0.10% significantly underperformed when compared to the industry average.
- Net operating cash flow has declined marginally to $43.44 million or 3.44% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
-- Written by a member of TheStreet RatingsStaff