This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

TSC Ratings' Updates: DryShips

The following ratings changes were generated on Tuesday, Oct. 21.

We've downgraded DryShips (DRYS - Get Report), which provides international seaborne transportation services, from buy to hold. Strengths include its robust revenue growth, notable return on equity and attractive valuation levels. Weaknesses include generally poor debt management and a generally disappointing performance in the stock itself.

Revenue leaped by 169% since the same quarter one year ago, greatly exceeding the industry average of 28.2% and helping to boost EPS. Current return on equity exceeded ROE from the same quarter last year, outperforming both the marine industry and the S&P 500, a clear sign of strength within the company. DryShips reported significant earnings per share improvement in the most recent quarter compared with the same quarter a year ago and has demonstrated a two-year pattern of positive EPS growth, but we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, DryShips increased its bottom line by earning $13.29 vs. $1.74 in the prior year. For the next year, the market is expecting a contraction of 2% in earnings to $13.03.

Its debt-to-equity ratio of 1.48 is relatively high when compared with the industry average, suggesting a need for better debt level management. The company also has a quick ratio of 0.37, clearly demonstrating an inability to cover short-term cash needs. Shares plunged 78.41% on the year, underperforming the S&P 500. Naturally, the overall market trend is bound to be a significant factor, and the stock's sharp decline last year could be 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. .
1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GDI $0.00 0.00%
DRYS $4.01 0.00%
AIMC $28.70 0.00%
JNS $14.60 0.00%
LION $16.16 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs