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) -- 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 increase in net income, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
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- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 7296.9% when compared to the same quarter one year prior, rising from -$0.06 million to $4.61 million.
- CALAMOS ASSET MANAGEMENT INC has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, CALAMOS ASSET MANAGEMENT INC increased its bottom line by earning $0.88 versus $0.77 in the prior year. For the next year, the market is expecting a contraction of 19.9% in earnings ($0.71 versus $0.88).
- CLMS, with its decline in revenue, underperformed when compared the industry average of 12.3%. Since the same quarter one year prior, revenues slightly dropped by 6.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The gross profit margin for CALAMOS ASSET MANAGEMENT INC is rather high; currently it is at 55.40%. 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 5.99% is significantly lower than the industry average.
-- Written by a member of TheStreet Ratings Staff