NEW YORK (TheStreet) -- Shares of Versar Inc. (VSR) are higher by 13.10% to $3.54 in early afternoon trading on Wednesday, after the company announced it was awarded a $98.3 million firm fixed price design, bid and build, task order, to repair the runway at Dover Air Force Base in Delaware.
Versar, which is headquartered in Springfield, VA, is a global project management company that provided sustainable value oriented solutions to government and commercial clients in a variety of markets.
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Separately, TheStreet Ratings team rates VERSAR INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate VERSAR INC (VSR) 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, reasonable valuation levels 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 poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- VSR's debt-to-equity ratio is very low at 0.04 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, VSR has a quick ratio of 1.91, which demonstrates the ability of the company to cover short-term liquidity needs.
- VERSAR INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, VERSAR INC increased its bottom line by earning $0.54 versus $0.45 in the prior year.
- The gross profit margin for VERSAR INC is currently extremely low, coming in at 7.00%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -0.46% is significantly below that of the industry average.
- 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 Commercial Services & Supplies industry and the overall market, VERSAR 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: VSR Ratings Report