Hooper Holmes Inc. Stock Downgraded (HH)

NEW YORK ( TheStreet) -- Hooper Holmes (AMEX: HH) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:
  • HOOPER HOLMES 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 reported a trend of declining earnings per share over the past two years. During the past fiscal year, HOOPER HOLMES INC swung to a loss, reporting -$0.05 versus $0.02 in the prior year.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Health Care Providers & Services industry. The net income has significantly decreased by 126.6% when compared to the same quarter one year ago, falling from $2.18 million to -$0.58 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Health Care Providers & Services industry and the overall market, HOOPER HOLMES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for HOOPER HOLMES INC is rather low; currently it is at 24.80%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.40% trails that of the industry average.
  • Net operating cash flow has significantly decreased to $0.59 million or 87.08% when compared to the same quarter last year. Despite a decrease in cash flow of 87.08%, HOOPER HOLMES INC is in line with the industry average cash flow growth rate of -94.54%.
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Hooper Holmes, Inc., together with its subsidiaries, provides outsourced health risk assessment services to the life and health insurance industries in the United States. Hooper Holmes has a market cap of $46 million and is part of the health care sector and health services industry. Shares are up 6.7% year to date as of the close of trading on Thursday.

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