- GSE SYSTEMS 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. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, GSE SYSTEMS INC swung to a loss, reporting -$0.58 versus $0.06 in the prior year.
- 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 Software industry. The net income has significantly decreased by 75.2% when compared to the same quarter one year ago, falling from -$1.16 million to -$2.02 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 Software industry and the overall market, GSE SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for GSE SYSTEMS INC is currently lower than what is desirable, coming in at 25.86%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -23.20% is significantly below that of the industry average.
- In its most recent trading session, GVP has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
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. Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 38.27 points (-0.2%) at 17,001 as of Friday, Aug. 22, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,124 issues advancing vs. 1,881 declining with 171 unchanged. The Technology sector as a whole closed the day up 0.3% versus the S&P 500, which was down 0.2%. Top gainers within the Technology sector included Trio-Tech International ( TRT), up 11.8%, Nortech Systems ( NSYS), up 2.6%, RIT Technologies ( RITT), up 3.4%, LightPath Technologies ( LPTH), up 3.2% and GSE Systems ( GVP), up 2.5%. TheStreet Ratings Group would like to highlight 3 stocks pushing the sector higher today: GSE Systems ( GVP) is one of the companies that pushed the Technology sector higher today. GSE Systems was up $0.04 (2.5%) to $1.63 on light volume. Throughout the day, 3,907 shares of GSE Systems exchanged hands as compared to its average daily volume of 21,400 shares. The stock ranged in a price between $1.54-$1.64 after having opened the day at $1.55 as compared to the previous trading day's close of $1.59. GSE Systems, Inc. provides simulation, educational, and engineering solutions and services to the nuclear and fossil electric utility industry, and the chemical and petrochemical industries worldwide. GSE Systems has a market cap of $30.1 million and is part of the computer software & services industry. Shares are up 5.0% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate GSE Systems 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 GSE Systems as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and poor profit margins. Highlights from TheStreet Ratings analysis on GVP go as follows: