- 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 Internet Software & Services industry. The net income has significantly decreased by 51.4% when compared to the same quarter one year ago, falling from -$2.09 million to -$3.17 million.
- The gross profit margin for SELECTICA INC is currently lower than what is desirable, coming in at 34.43%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -89.46% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to -$1.68 million or 168.83% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The debt-to-equity ratio of 1.03 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, SLTC's quick ratio is somewhat strong at 1.38, demonstrating the ability to handle short-term liquidity needs.
- SLTC's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 34.89%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
At the close, Selectica ( SLTC) was up $0.24 (3.8%) to $6.36 on light volume. Throughout the day, 3,611 shares of Selectica exchanged hands as compared to its average daily volume of 7,400 shares. The stock ranged in a price between $6.25-$6.36 after having opened the day at $6.25 as compared to the previous trading day's close of $6.12. Selectica, Inc. provides cloud-based software solutions for companies in the United States, Canada, India, New Zealand, Switzerland, and the United Kingdom. Selectica has a market cap of $35.3 million and is part of the technology sector. Shares are down 4.5% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Selectica 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 Selectica as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, poor profit margins, weak operating cash flow, generally high debt management risk and generally disappointing historical performance in the stock itself. Highlights from TheStreet Ratings analysis on SLTC go as follows: