The firm said it raised its rating on the company, which develops, manufacturers, and markets photolithography, laser thermal processing, and inspection equipment, based on a valuation call.
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Separately, TheStreet Ratings team rates ULTRATECH INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate ULTRATECH INC (UTEK) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures 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."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- UTEK's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 10.24, which clearly demonstrates the ability to cover short-term cash needs.
- 47.22% is the gross profit margin for ULTRATECH INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, UTEK's net profit margin of -22.05% significantly underperformed when compared to the industry average.
- Net operating cash flow has significantly decreased to -$3.30 million or 1234.41% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- 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 Semiconductors & Semiconductor Equipment industry and the overall market, ULTRATECH INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: UTEK Ratings Report