NEW YORK ( TheStreet) -- Hudson Global (Nasdaq: HSON) has been downgraded by TheStreet Ratings from hold to sell. Among the areas we feel are negative, one of the most important has been unimpressive growth in net income over time. Highlights from the ratings report include:
- 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 Professional Services industry. The net income has significantly decreased by 53583.3% when compared to the same quarter one year ago, falling from -$0.01 million to -$3.22 million.
- This stock's share value has moved by only 16.92% over the past year. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Professional Services industry and the overall market, HUDSON GLOBAL INC's return on equity is below that of both the industry average and the S&P 500.
- HSON, with its decline in revenue, slightly underperformed the industry average of 8.0%. Since the same quarter one year prior, revenues slightly dropped by 8.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- 36.50% is the gross profit margin for HUDSON GLOBAL INC which we consider to be strong. Regardless of HSON's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -1.60% trails the industry average.
-- Written by a member of TheStreet Ratings Staff