Posted On: 10/20/2014 9:54:46 AM
Post# of 275
IFON~ TheStreet Ratings rates InfoSonics as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow.
Highlights from TheStreet Ratings analysis on IFON go as follows:
The revenue growth came in higher than the industry average of 4.1%. Since the same quarter one year prior, revenues rose by 25.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
IFON 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. Along with this, the company maintains a quick ratio of 3.23, which clearly demonstrates the ability to cover short-term cash needs.
The gross profit margin for INFOSONICS CORP is rather low; currently it is at 19.71%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.04% significantly trails the industry average.
Net operating cash flow has significantly decreased to $0.88 million or 51.87% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
http://www.thestreet.com/story/12912082/1/3-s...lower.html
Highlights from TheStreet Ratings analysis on IFON go as follows:
The revenue growth came in higher than the industry average of 4.1%. Since the same quarter one year prior, revenues rose by 25.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
IFON 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. Along with this, the company maintains a quick ratio of 3.23, which clearly demonstrates the ability to cover short-term cash needs.
The gross profit margin for INFOSONICS CORP is rather low; currently it is at 19.71%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.04% significantly trails the industry average.
Net operating cash flow has significantly decreased to $0.88 million or 51.87% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
http://www.thestreet.com/story/12912082/1/3-s...lower.html
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