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) -- iParty Corporation (AMEX: IPT) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.
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- Compared to its closing price of one year ago, IPT's share price has jumped by 197.33%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- 43.00% is the gross profit margin for IPARTY CORP which we consider to be strong. Regardless of IPT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, IPT's net profit margin of 6.62% compares favorably to the industry average.
- IPARTY CORP's earnings per share declined by 12.5% 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 two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, IPARTY CORP continued to lose money by earning -$0.07 versus -$0.10 in the prior year.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Specialty Retail industry. The net income has significantly decreased by 40.3% when compared to the same quarter one year ago, falling from $2.98 million to $1.78 million.
- Net operating cash flow has decreased to $1.42 million or 49.10% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
-- Written by a member of TheStreet Ratings Staff