Why Maxwell Technologies Inc. (NASDAQ:MXWL) is Still a Hold in the Market

Boston, MA 03/06/2014 (wallstreetpr) – Maxwell Technologies Inc. (NASDAQ:MXWL) jumped in the market on Wednesday trading session by highs of 23% after it was announced of the expansion of the company’s Engine start Module to medium- duty trucks. Despite the positive news the company stock continue to be rated as a “Hold” by a research note to investors by TheStreet

The rating of a hold comes at the back of the company’s strengths in its solid financial position as well as, impressive profit margins. Weaknesses that necessitate the hold rating lie on the company’s stock only experiencing feeble growth withearnings per share also ona declining trend.

Highlights of Maxwell Technologies hold rating

Maxwell Technologies Inc. (NASDAQ:MXWL) debt to equity ratio continues to lag the industry average, coming in at 0.06 implying a lot has to be done to control the company’s debt. Poor debt to equity ratio is on the other hand countered by a strong quick ratio of 1.37 which demonstrates the effectiveness and ability of the company to meet its short term cash needs.

The hold ratings comes at the back of Maxwell Technologies commanding a good gross profit margin of 43.07%  although the margin has slightly decreased when compared to the same quarter a year ago. The downside in this case is  the company’s net profit margin which lags the industry average raising lots of concerns in the industry as it clocks in at -7.1%.

Maxwell Technologies Inc. (NASDAQ:MXWL) earnings per share has maintained a declining pattern in the recent quarter and continues to perform poorly when compared to that of the  same quarter a year ago. Analysts expect the company earnings per share to still decline in the current quarter thus one of the reason behind the Hold rating.

The past fiscal year saw Maxwell Technologies Inc. (NASDAQ:MXWL) report earnings per share of $0.22 against $0.25 reported for the same quarter a year earlier. Maxwell Technologies change in net income has also substantially underperformed when compared to the industry average and that of the S&P 500. The company’s net income has dropped by highs of 198.2% when compared to the same quarter a year ago, falling from $2.87 million to $2.81 million in the process.

Maxwell Technologies Inc. (NASDAQ:MXWL) Hold rating is also as a result of rumors in the market that the company is set to enter into an agreement with Tesla Motors Inc. (NASDAQ:TSLA) for the supply of Ultra capacitors

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Published by Nicholas Maithya

Nicholas is a Financial Analyst by profession, who enjoys writing about investments, technological developments, business, economics and other financial topics at various financial publications. Join him here on Wallstreetpr.com as he endeavors to deliver to you the latest breaking news on the above mentioned fronts. Contact him by email at nmaithya@gmail.com or follow Nicholas Kitonyi @nmaithyak on Twitter.

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