- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Internet Software & Services industry and the overall market, GLOWPOINT INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to $0.31 million or 31.44% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- GLOW's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 26.25%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- 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. Even though the debt-to-equity ratio is weak, GLOW's quick ratio is somewhat strong at 1.21, demonstrating the ability to handle short-term liquidity needs.
- GLOW, with its decline in revenue, underperformed when compared the industry average of 9.5%. Since the same quarter one year prior, revenues slightly dropped by 4.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
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. All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 140 points (0.8%) at 17,869 as of Tuesday, Feb. 10, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,747 issues advancing vs. 1,330 declining with 126 unchanged. The Technology sector as a whole closed the day up 0.6% versus the S&P 500, which was up 1.1%. Top gainers within the Technology sector included LookSmart ( LOOK), up 3.1%, GRAVITY ( GRVY), up 5.7%, Cover-All Technologies ( COVR), up 3.5%, Eltek ( ELTK), up 1.7% and Glowpoint ( GLOW), up 2.0%. TheStreet Ratings Group would like to highlight 3 stocks pushing the sector higher today: Glowpoint ( GLOW) is one of the companies that pushed the Technology sector higher today. Glowpoint was up $0.02 (2.0%) to $1.04 on light volume. Throughout the day, 5,041 shares of Glowpoint exchanged hands as compared to its average daily volume of 17,100 shares. The stock ranged in a price between $1.04-$1.05 after having opened the day at $1.05 as compared to the previous trading day's close of $1.02. Glowpoint, Inc. provides video collaboration services and network solutions in the United States. The company offers managed videoconferencing as a cloud-based service with videoconferences hosted in the Glowpoint Cloud and as on-premise solution. Glowpoint has a market cap of $38.7 million and is part of the telecommunications industry. Shares are down 1.8% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Glowpoint a buy, no analysts rate it a sell, and none rate it a hold. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings rates Glowpoint as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and generally high debt management risk. Highlights from TheStreet Ratings analysis on GLOW go as follows: