- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Software industry and the overall market, FALCONSTOR SOFTWARE INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The revenue fell significantly faster than the industry average of 11.4%. Since the same quarter one year prior, revenues fell by 19.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. 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.
- The gross profit margin for FALCONSTOR SOFTWARE INC is currently very high, coming in at 81.36%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 11.77% trails the industry average.
- Net operating cash flow has significantly increased by 121.80% to $1.10 million when compared to the same quarter last year. In addition, FALCONSTOR SOFTWARE INC has also vastly surpassed the industry average cash flow growth rate of 41.71%.
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 are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 116.81 points (-0.7%) at 17,056 as of Tuesday, Sept. 23, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 891 issues advancing vs. 2,185 declining with 134 unchanged. The Computer Software & Services industry as a whole closed the day down 0.8% versus the S&P 500, which was down 0.6%. Top gainers within the Computer Software & Services industry included Sajan ( SAJA), up 1.8%, One Horizon Group ( OHGI), up 3.3%, GRAVITY ( GRVY), up 2.5%, Authentidate ( ADAT), up 3.9% and FalconStor Software ( FALC), up 1.6%. TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today: FalconStor Software ( FALC) is one of the companies that pushed the Computer Software & Services industry higher today. FalconStor Software was up $0.02 (1.6%) to $1.24 on average volume. Throughout the day, 70,857 shares of FalconStor Software exchanged hands as compared to its average daily volume of 49,200 shares. The stock ranged in a price between $1.19-$1.24 after having opened the day at $1.19 as compared to the previous trading day's close of $1.22. FalconStor Software, Inc. develops, manufactures, and sells data migration, business continuity, disaster recovery, optimized backup, and de-duplication solutions worldwide. FalconStor Software has a market cap of $57.9 million and is part of the technology sector. Shares are down 9.6% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate FalconStor Software 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 FalconStor Software as a sell. The area that we feel has been the company's primary weakness has been its declining revenues. Highlights from TheStreet Ratings analysis on FALC go as follows: