Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. NEW YORK ( TheStreet) -- Mattson Technology (Nasdaq: MTSN) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.
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- MTSN's very impressive revenue growth greatly exceeded the industry average of 3.3%. Since the same quarter one year prior, revenues leaped by 113.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- MTSN 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. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.16, which illustrates the ability to avoid short-term cash problems.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, MATTSON TECHNOLOGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for MATTSON TECHNOLOGY INC is currently lower than what is desirable, coming in at 33.90%. Regardless of MTSN's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, MTSN's net profit margin of 5.70% is significantly lower than the industry average.