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) -- Research in Motion (Nasdaq: BBRY) has been reiterated by TheStreet Ratings as a sell with a ratings score of D+. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and weak operating cash flow.
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- 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 Communications Equipment industry and the overall market, RESEARCH IN MOTION LTD's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to $210.00 million or 80.00% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- RESEARCH IN MOTION LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, RESEARCH IN MOTION LTD swung to a loss, reporting -$1.20 versus $2.24 in the prior year.
- The revenue fell significantly faster than the industry average of 14.3%. Since the same quarter one year prior, revenues fell by 36.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- 47.90% is the gross profit margin for RESEARCH IN MOTION LTD which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, BBRY's net profit margin of 3.66% significantly trails the industry average.
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