NEW YORK ( TheStreet) -- Parametric Sound (Nasdaq: PAMT) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow. Highlights from the ratings report include:
- Compared to its closing price of one year ago, PAMT's share price has jumped by 53.62%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- PAMT 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 9.00, which clearly demonstrates the ability to cover short-term cash needs.
- Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, PARAMETRIC SOUND CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- PARAMETRIC SOUND CORP 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, 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 Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 156.3% when compared to the same quarter one year ago, falling from -$0.38 million to -$0.96 million.
-- Written by a member of TheStreet Ratings Staff