Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. TheStreet Ratings quantitative algorithm evaluates over 4,300 stocks on a daily basis by 32 different data factors and assigns a unique buy, sell, or hold recommendation on each stock. Click here to learn more.
NEW YORK (TheStreet) -- B.O.S. Better Online Solutions (BOSC) has been downgraded by TheStreet Ratings from Hold to Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate BOS BETTER ONLINE SOLUTIONS (BOSC) a SELL. This is driven by several 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. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity and poor profit margins."
Must Read: Warren Buffett's 25 Favorite Stocks
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- 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 Communications Equipment industry. The net income has significantly decreased by 96.3% when compared to the same quarter one year ago, falling from $0.22 million to $0.01 million.
- The debt-to-equity ratio of 1.17 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, BOSC has a quick ratio of 0.64, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- 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. Compared to other companies in the Communications Equipment industry and the overall market, BOS BETTER ONLINE SOLUTIONS's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for BOS BETTER ONLINE SOLUTIONS is rather low; currently it is at 20.90%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.11% significantly trails the industry average.
- BOS BETTER ONLINE SOLUTIONS 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, BOS BETTER ONLINE SOLUTIONS turned its bottom line around by earning $0.00 versus -$0.49 in the prior year.
- You can view the full analysis from the report here: BOSC Ratings Report