Globe Specialty Metals Inc. Stock Downgraded (GSM)
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- The revenue growth came in higher than the industry average of 4.0%. Since the same quarter one year prior, revenues rose by 12.9%. 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.
- The current debt-to-equity ratio, 0.33, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, GSM has a quick ratio of 2.09, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has increased to $27.00 million or 17.23% 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 41.39%.
- 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 Metals & Mining industry and the overall market on the basis of return on equity, GLOBE SPECIALTY METALS INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
- The gross profit margin for GLOBE SPECIALTY METALS INC is currently extremely low, coming in at 8.40%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -20.49% is significantly below that of the industry average.
-- Written by a member of TheStreet Ratings Staff
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