Colfax Corporation Stock Downgraded (CFX)
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- CFX's very impressive revenue growth greatly exceeded the industry average of 12.5%. Since the same quarter one year prior, revenues leaped by 477.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.90, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.18, which illustrates the ability to avoid short-term cash problems.
- COLFAX CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, COLFAX CORP swung to a loss, reporting -$1.09 versus $0.09 in the prior year. This year, the market expects an improvement in earnings ($1.85 versus -$1.09).
- 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. Compared to other companies in the Machinery industry and the overall market, COLFAX CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for COLFAX CORP is currently lower than what is desirable, coming in at 31.80%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.92% trails that of the industry average.
-- Written by a member of TheStreet Ratings Staff
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