LMI Aerospace Inc. Stock Downgraded (LMIA)
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- LMIA's very impressive revenue growth greatly exceeded the industry average of 4.4%. Since the same quarter one year prior, revenues leaped by 58.9%. 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.
- Even though the current debt-to-equity ratio is 1.37, it is still below the industry average, suggesting that this level of debt is acceptable within the Aerospace & Defense industry. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.32 is sturdy.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
- The gross profit margin for LMI AEROSPACE INC is currently lower than what is desirable, coming in at 25.80%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.73% trails that of the industry average.
- Net operating cash flow has significantly decreased to -$10.46 million or 2544.39% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
-- Written by a member of TheStreet Ratings Staff
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