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NEW YORK (TheStreet) -- Jiayuan.Com International (DATE) has been downgraded by TheStreet Ratings from Buy to Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate JIAYUAN.COM INTL LTD (DATE) 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, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- DATE 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, DATE has a quick ratio of 2.30, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for JIAYUAN.COM INTL LTD is rather high; currently it is at 62.78%. Regardless of DATE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 10.94% trails the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Internet Software & Services industry average. The net income has decreased by 1.1% when compared to the same quarter one year ago, dropping from $2.13 million to $2.11 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Internet Software & Services industry and the overall market, JIAYUAN.COM INTL LTD's return on equity is below that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: DATE Ratings Report