NEW YORK (TheStreet) -- John B. Sanfilippo & Son (Nasdaq:JBSS) has been downgraded by TheStreet Ratings from buy to hold. Among the primary strengths of the company is its robust revenue growth -- not just in the most recent periods but in previous quarters as well. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity. Highlights from the ratings report include:
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 30.30%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 194.44% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Food Products industry. The net income has significantly decreased by 196.1% when compared to the same quarter one year ago, falling from -$1.90 million to -$5.63 million.
- JBSS's debt-to-equity ratio of 0.75 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.27 is very low and demonstrates very weak liquidity.
- SANFILIPPO JOHN B&SON has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, SANFILIPPO JOHN B&SON increased its bottom line by earning $1.34 versus $0.65 in the prior year.
- JBSS's revenue growth has slightly outpaced the industry average of 16.1%. Since the same quarter one year prior, revenues rose by 21.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
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