Alteva

Dividend Yield: 11.70%

Alteva (AMEX: ALTV) shares currently have a dividend yield of 11.70%.

Alteva provides cloud-based unified communications solutions for small, medium, and enterprise businesses. The company operates in two segments, Unified Communications and Telephone. Currently there are no analysts that rate Alteva a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Alteva has been 11,000 shares per day over the past 30 days. Alteva has a market cap of $53.0 million and is part of the telecommunications industry. Shares are down 14.8% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Alteva as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • 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 Diversified Telecommunication Services industry and the overall market, ALTEVA's return on equity significantly trails that of both the industry average and the S&P 500.
  • ALTV's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 38.05%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • ALTEVA has improved earnings per share by 48.4% 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, ALTEVA swung to a loss, reporting -$0.54 versus $0.51 in the prior year. This year, the market expects an improvement in earnings (-$0.01 versus -$0.54).
  • The current debt-to-equity ratio, 0.50, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.33 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The gross profit margin for ALTEVA is rather high; currently it is at 51.40%. It has increased significantly from the same period last year.

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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.
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