Globe Specialty Metals Inc. Stock Downgraded (GSM)
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- The revenue growth greatly exceeded the industry average of 21.8%. Since the same quarter one year prior, revenues rose by 14.8%. 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.
- GSM's debt-to-equity ratio is very low at 0.29 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, GSM has a quick ratio of 1.91, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has increased to $15.92 million or 28.77% when compared to the same quarter last year. Despite an increase in cash flow, GLOBE SPECIALTY METALS INC's cash flow growth rate is still lower than the industry average growth rate of 40.93%.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Metals & Mining industry and the overall market, GLOBE SPECIALTY METALS INC's return on equity is below that of both the industry average and the S&P 500.
- The gross profit margin for GLOBE SPECIALTY METALS INC is rather low; currently it is at 21.70%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -2.80% is significantly below that of the industry average.
-- Written by a member of TheStreet Ratings Staff
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