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Hardware Project :: 3 Stocks Advancing The Computer Hardware Industry

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 324.80 points (-1.9%) at 16,666 as of Friday, Aug. 21, 2015, 12:55 PM ET. The NYSE advances/declines ratio sits at 525 issues advancing vs. 2,498 declining with 133 unchanged.
The Computer Hardware industry as a whole closed the day down 0.9% versus the S&P 500, which was down 1.7%. Top gainers within the Computer Hardware industry included Interphase ( INPH), up 2.6%, Crossroads Systems ( CRDS), up 3.6%, Mad Catz Interactive ( MCZ), up 3.4%, Datalink ( DTLK), up 2.8% and MRV Communications ( MRVC), up 5.5%.
TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:
Mad Catz Interactive ( MCZ) is one of the companies that pushed the Computer Hardware industry higher today. Mad Catz Interactive was up $0.01 (3.4%) to $0.45 on average volume. Throughout the day, 380,611 shares of Mad Catz Interactive exchanged hands as compared to its average daily volume of 270,400 shares. The stock ranged in a price between $0.42-$0.47 after having opened the day at $0.43 as compared to the previous trading day's close of $0.44.
Mad Catz Interactive, Inc. designs, manufactures, markets, sells, and distributes various entertainment products in the United States and internationally. Mad Catz Interactive has a market cap of $30.9 million and is part of the technology sector. Shares are up 2.5% year-to-date as of the close of trading on Thursday. Currently there are 2 analysts who rate Mad Catz Interactive a buy, no analysts rate it a sell, and none rate it a hold.
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TheStreet Ratings rates Mad Catz Interactive as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and weak operating cash flow.
Highlights from TheStreet Ratings analysis on MCZ go as follows:
The gross profit margin for MAD CATZ INTERACTIVE INC is currently lower than what is desirable, coming in at 25.75%. It has decreased from the same quarter the previous year. Despite the weak results of the gross profit margin, the net profit margin of 33.55% has significantly outperformed against the industry average.
Net operating cash flow has decreased to $5.70 million or 23.83% when compared to the same quarter last year. Despite a decrease in cash flow of 23.83%, MAD CATZ INTERACTIVE INC is still significantly exceeding the industry average of -103.90%.
This stock's share value has moved by only 35.00% over the past year. 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 revenue fell significantly faster than the industry average of 12.9%. Since the same quarter one year prior, revenues fell by 18.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
The current debt-to-equity ratio, 0.57, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.49 is very weak and demonstrates a lack of ability to pay short-term obligations.

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