- 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 Communications Equipment industry. The net income has significantly decreased by 120.7% when compared to the same quarter one year ago, falling from -$7.89 million to -$17.42 million.
- 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 Communications Equipment industry and the overall market, NOVATEL WIRELESS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for NOVATEL WIRELESS INC is rather low; currently it is at 15.46%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -46.72% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to -$4.36 million or 194.36% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 43.70%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 121.73% compared to the year-earlier 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.
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 81 points (0.5%) at 16,920 as of Tuesday, Aug. 19, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,954 issues advancing vs. 1,082 declining with 162 unchanged. The Telecommunications industry as a whole closed the day up 0.2% versus the S&P 500, which was up 0.5%. Top gainers within the Telecommunications industry included Voltari ( VLTC), up 4.9%, Blonder Tongue Laboratories ( BDR), up 14.6%, RELM Wireless ( RWC), up 1.6%, Iteris ( ITI), up 4.5% and Novatel Wireless ( NVTL), up 1.5%. TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today: Novatel Wireless ( NVTL) is one of the companies that pushed the Telecommunications industry higher today. Novatel Wireless was up $0.03 (1.5%) to $2.00 on average volume. Throughout the day, 167,223 shares of Novatel Wireless exchanged hands as compared to its average daily volume of 148,800 shares. The stock ranged in a price between $1.94-$2.00 after having opened the day at $1.99 as compared to the previous trading day's close of $1.97. Novatel Wireless, Inc. provides wireless broadband access solutions for the mobile communications market worldwide. It operates in the Mobile Computing Products, and M2M Products and Solutions segments. Novatel Wireless has a market cap of $72.6 million and is part of the technology sector. Shares are down 16.9% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Novatel Wireless a buy, 1 analyst rates 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 Novatel Wireless as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself. Highlights from TheStreet Ratings analysis on NVTL go as follows: