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"We rate PAR TECHNOLOGY CORP (PAR) 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, good cash flow from operations and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and poor profit margins."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- PAR's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.01, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has significantly increased by 222.25% to $3.86 million when compared to the same quarter last year. In addition, PAR TECHNOLOGY CORP has also vastly surpassed the industry average cash flow growth rate of -23.73%.
- PAR TECHNOLOGY CORP 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, PAR TECHNOLOGY CORP turned its bottom line around by earning $0.05 versus -$0.11 in the prior year.
- The gross profit margin for PAR TECHNOLOGY CORP is rather low; currently it is at 22.81%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.90% trails that of the industry average.
- 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 Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 1010.5% when compared to the same quarter one year ago, falling from $0.06 million to -$0.52 million.
- You can view the full analysis from the report here: PAR Ratings Report