Gaiam Inc. Stock Downgraded (GAIA)

NEW YORK (TheStreet) -- Gaiam (Nasdaq:GAIA) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

• 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 Internet & Catalog Retail industry. The net income has significantly decreased by 662.6% when compared to the same quarter one year ago, falling from -$0.54 million to -$4.14 million.
• The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Internet & Catalog Retail industry and the overall market, GAIAM INC's return on equity significantly trails that of both the industry average and the S&P 500.
• 44.60% is the gross profit margin for GAIAM INC which we consider to be strong. Regardless of GAIA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GAIA's net profit margin of -8.20% significantly underperformed when compared to the industry average.
• The revenue fell significantly faster than the industry average of 31.6%. Since the same quarter one year prior, revenues fell by 10.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
• Compared to where it was trading one year ago, GAIA is down 24.22% to its most recent closing price of 4.10. Looking ahead, our view is that this stock still does not have good upside potential and may even suffer further declines.

Gaiam, Inc., a lifestyle media company, provides a selection of information, media, products, and services to customers focusing on personal development, wellness, ecological lifestyles, and responsible media. The company has a P/E ratio of 29, above the average retail industry P/E ratio of 27.2 and above the S&P 500 P/E ratio of 17.7. Gaiam has a market cap of $77.9 million and is part of the services sector and retail industry. Shares are down 46.8% year to date as of the close of trading on Tuesday.

You can view the full Gaiam Ratings Report or get investment ideas from our investment research center.

For more information on Gaiam Inc. Class A click any of the following:

• Gaiam Inc. Class A Stock Price

• Gaiam Inc. Class A Analyst Ratings

• Gaiam Inc. Class A Key Stats & Profile

• Gaiam Inc. Class A Earnings

• Gaiam Inc. Class A Ratio Comparison

• Gaiam Inc. Class A Growth Rates

• Gaiam Inc. Class A Balance Sheet

• Gaiam Inc. Class A Cash Flow

• Gaiam Inc. Class A Income Statement