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- The revenue growth greatly exceeded the industry average of 12.7%. Since the same quarter one year prior, revenues rose by 40.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- RDA 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. To add to this, RDA has a quick ratio of 1.61, which demonstrates the ability of the company to cover short-term liquidity needs.
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, RDA has underperformed the S&P 500 Index, declining 14.30% from its price level of one year ago. 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.
- The gross profit margin for RDA MICROELECTRONCS INC -ADR is currently lower than what is desirable, coming in at 31.70%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 11.55% trails that of the industry average.
-- Written by a member of TheStreet Ratings Staff
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