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"We rate DIGITAL POWER CORP (DPW) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Net operating cash flow has significantly decreased to -$0.28 million or 221.83% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Electrical Equipment industry and the overall market, DIGITAL POWER CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- DIGITAL POWER CORP reported significant earnings per share improvement in the most recent quarter compared to 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, DIGITAL POWER CORP reported poor results of -$0.09 versus -$0.05 in the prior year.
- 36.17% is the gross profit margin for DIGITAL POWER CORP which we consider to be strong. 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 -6.72% is in-line with the industry average.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electrical Equipment industry. The net income increased by 40.7% when compared to the same quarter one year prior, rising from -$0.25 million to -$0.15 million.
- You can view the full analysis from the report here: DPW Ratings Report