- 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 Software industry and the overall market, BSQUARE CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for BSQUARE CORP is rather low; currently it is at 16.27%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.72% is significantly below that of the industry average.
- BSQUARE CORP 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, BSQUARE CORP swung to a loss, reporting -$0.47 versus $0.07 in the prior year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 54.4% when compared to the same quarter one year prior, rising from -$0.86 million to -$0.39 million.
- Looking at where the stock is today compared to one year ago, we find that it is higher, and it has outperformed the rise in the S&P 500 over the same period. Regardless of the rise in share value over the previous year, we feel that the risks involved in investing in this stock do not compensate for any future upside potential.
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 traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 32 points (0.2%) at 16,953 as of Friday, June 20, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,583 issues advancing vs. 1,400 declining with 164 unchanged. The Computer Software & Services industry as a whole was unchanged today versus the S&P 500, which was up 0.2%. Top gainers within the Computer Software & Services industry included Vicon Industries ( VII), up 2.4%, Peerless Systems ( PRLS), up 3.0%, Cover-All Technologies ( COVR), up 8.0%, TigerLogic ( TIGR), up 2.3% and Bsquare ( BSQR), up 1.6%. TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today: Bsquare ( BSQR) is one of the companies that pushed the Computer Software & Services industry higher today. Bsquare was up $0.05 (1.6%) to $3.25 on light volume. Throughout the day, 8,263 shares of Bsquare exchanged hands as compared to its average daily volume of 11,400 shares. The stock ranged in a price between $3.22-$3.38 after having opened the day at $3.22 as compared to the previous trading day's close of $3.20. BSQUARE Corporation provides software solutions and related engineering services to companies that develop smart connected systems in North America, Asia, Europe, and internationally. Bsquare has a market cap of $37.9 million and is part of the technology sector. Shares are down 7.8% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Bsquare 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 Bsquare as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and poor profit margins. Highlights from TheStreet Ratings analysis on BSQR go as follows: