AdCare Health Systems Inc. Stock Downgraded (ADK)
- The debt-to-equity ratio is very high at 7.93 and currently higher than the industry average, implying that there is very poor management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, ADK maintains a poor quick ratio of 0.95, which illustrates the inability to avoid short-term cash problems.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Health Care Providers & Services industry and the overall market, ADCARE HEALTH SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- ADCARE HEALTH SYSTEMS INC 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, ADCARE HEALTH SYSTEMS INC swung to a loss, reporting -$0.37 versus $0.10 in the prior year. For the next year, the market is expecting a contraction of 166.9% in earnings (-$0.98 versus -$0.37).
- 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 Health Care Providers & Services industry. The net income has significantly decreased by 619.6% when compared to the same quarter one year ago, falling from -$0.61 million to -$4.40 million.
- The gross profit margin for ADCARE HEALTH SYSTEMS INC is currently extremely low, coming in at 4.20%. Regardless of ADK's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, ADK's net profit margin of -12.60% significantly underperformed when compared to the industry average.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.