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"We rate JAMBA INC (JMBA) 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 solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- JAMBA 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 reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, JAMBA INC turned its bottom line around by earning $0.08 versus -$0.15 in the prior year. This year, the market expects an improvement in earnings ($0.42 versus $0.08).
- The gross profit margin for JAMBA INC is rather low; currently it is at 19.89%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -2.89% is significantly below 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 Hotels, Restaurants & Leisure industry. The net income has significantly decreased by 163.1% when compared to the same quarter one year ago, falling from $2.70 million to -$1.70 million.
- You can view the full analysis from the report here: JMBA Ratings Report