NEW YORK (TheStreet) -- Shares of InterCloud Systems, Inc. (ICLD) are soaring 19.11% to $6.67 on Friday after it announced adding over $8 million in purchase orders for its WiFi, DAS, small cell and other next generation network wireless solutions.
Orders include a previously announced $4.9 million Chicago commercial project and more than $3.1 million in additional purchase orders from existing clients for new wireless network expansion
Separately, TheStreet Ratings team rates INTERCLOUD SYSTEMS INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate INTERCLOUD SYSTEMS INC (ICLD) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- 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 IT Services industry and the overall market, INTERCLOUD SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$3.28 million or 1340.90% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- ICLD has underperformed the S&P 500 Index, declining 10.58% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The gross profit margin for INTERCLOUD SYSTEMS INC is currently lower than what is desirable, coming in at 27.95%. Regardless of ICLD's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, ICLD's net profit margin of 47.28% significantly outperformed against the industry.
- The current debt-to-equity ratio, 0.55, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that ICLD's debt-to-equity ratio is low, the quick ratio, which is currently 0.50, displays a potential problem in covering short-term cash needs.
- You can view the full analysis from the report here: ICLD Ratings Report