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NEW YORK (TheStreet) -- Peregrine Semiconductor (PSMI) has been upgraded by TheStreet Ratings from Sell to Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate PEREGRINE SEMICONDUCTOR CORP (PSMI) 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, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to its closing price of one year ago, PSMI's share price has jumped by 54.54%, exceeding the performance of the broader market during that same time frame. Although PSMI had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- PSMI has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, PSMI has a quick ratio of 1.73, which demonstrates the ability of the company to cover short-term liquidity needs.
- 44.06% is the gross profit margin for PEREGRINE SEMICONDUCTOR CORP which we consider to be strong. Regardless of PSMI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PSMI's net profit margin of -7.30% significantly underperformed when compared to the industry average.
- PEREGRINE SEMICONDUCTOR 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. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, PEREGRINE SEMICONDUCTOR CORP swung to a loss, reporting -$0.14 versus $0.20 in the prior year. For the next year, the market is expecting a contraction of 271.4% in earnings (-$0.52 versus -$0.14).
- 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 Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 171.0% when compared to the same quarter one year ago, falling from $4.43 million to -$3.15 million.
- You can view the full analysis from the report here: PSMI Ratings Report