Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model NEW YORK ( TheStreet) -- Tangoe (Nasdaq: TNGO) has been downgraded by TheStreet Ratings from hold to sell. The area that we feel has been the company's primary weakness has been its disappointing return on equity.
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- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Software industry and the overall market, TANGOE INC's return on equity significantly trails that of both the industry average and the S&P 500.
- In its most recent trading session, TNGO has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors.
- TANGOE INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TANGOE INC reported poor results of -$0.12 versus -$0.06 in the prior year. This year, the market expects an improvement in earnings ($0.46 versus -$0.12).
- The gross profit margin for TANGOE INC is rather high; currently it is at 54.40%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 0.90% trails the industry average.
- Net operating cash flow has significantly increased by 63.86% to $4.01 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 19.50%.
-- Written by a member of TheStreet Ratings Staff