- Despite its growing revenue, the company underperformed as compared with the industry average of 9.4%. Since the same quarter one year prior, revenues slightly increased by 5.5%. 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.
- LPTH's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, LPTH has a quick ratio of 2.10, which demonstrates the ability of the company to cover short-term liquidity needs.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- 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 Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 161.8% when compared to the same quarter one year ago, falling from $0.22 million to -$0.13 million.
- 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 Electronic Equipment, Instruments & Components industry and the overall market, LIGHTPATH TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
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. All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 104.52 points (-0.6%) at 16,739 as of Thursday, June 12, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,187 issues advancing vs. 1,811 declining with 135 unchanged. The Electronics industry as a whole closed the day down 0.6% versus the S&P 500, which was down 0.9%. Top gainers within the Electronics industry included Vicon Industries ( VII), up 2.0%, Nortech Systems ( NSYS), up 3.2%, Advanced Photonix ( API), up 13.2%, Pulse Electronics ( PULS), up 3.6% and LightPath Technologies ( LPTH), up 3.0%. TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today: LightPath Technologies ( LPTH) is one of the companies that pushed the Electronics industry higher today. LightPath Technologies was up $0.04 (3.0%) to $1.36 on light volume. Throughout the day, 1,596 shares of LightPath Technologies exchanged hands as compared to its average daily volume of 30,900 shares. The stock ranged in a price between $1.32-$1.36 after having opened the day at $1.32 as compared to the previous trading day's close of $1.32. LightPath Technologies, Inc. designs, develops, manufactures, and distributes optical components and assemblies. LightPath Technologies has a market cap of $19.5 million and is part of the basic materials sector. Shares are down 2.9% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates LightPath Technologies a buy, no analysts rate it a sell, and none rate it a hold. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings rates LightPath Technologies as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share. Highlights from TheStreet Ratings analysis on LPTH go as follows: