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
TheStreet Open House
EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stock Under $10 that he thinks could potentially double or triple in the next 6 to 12-months. See what he's trading today with a 14-day FREE pass.

China Gengsheng Minerals Stock Downgraded (CHGS)

NEW YORK ( TheStreet) -- China Gengsheng Minerals (AMEX: CHGS) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, generally weak debt management, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • The debt-to-equity ratio of 1.32 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, CHGS maintains a poor quick ratio of 0.96, 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 Chemicals industry and the overall market, CHINA GENGSHENG MINERALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CHINA GENGSHENG MINERALS INC is currently lower than what is desirable, coming in at 28.90%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.20% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$1.09 million or 268.89% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • CHINA GENGSHENG MINERALS 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, CHINA GENGSHENG MINERALS INC reported lower earnings of $0.02 versus $0.24 in the prior year. For the next year, the market is expecting a contraction of 125.0% in earnings (-$0.01 versus $0.02).

China GengSheng Minerals, Inc., through its subsidiaries, develops, manufactures, and sells a range of mineral-based heat-resistant products, including monolithic refractories, industrial ceramics, fracture proppants, and fine precision abrasives. The company has a P/E ratio of 5.1, below the S&P 500 P/E ratio of 17.7. China Gengsheng has a market cap of $35.4 million and is part of the basic materials sector and metals & mining industry. Shares are down 74.4% year to date as of the close of trading on Tuesday.

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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
Submit an article to us!
DOW 16,832.55 -210.35 -1.23%
S&P 500 1,954.21 -18.08 -0.92%
NASDAQ 4,436.9110 -56.4790 -1.26%

Brokerage Partners

Top Rated Stocks Top Rated Funds Top Rated ETFs