Trade-Ideas: Yingli Green Energy Holding Company (YGE) Is Today's "Perilous Reversal" Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified Yingli Green Energy Holding Company (YGE) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Yingli Green Energy Holding Company as such a stock due to the following factors:
- YGE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.1 million.
- YGE has traded 2.7 million shares today.
- YGE is down 3.4% today.
- YGE was up 6.5% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in YGE with the Ticky from Trade-Ideas. See the FREE profile for YGE NOW at Trade-IdeasMore details on YGE: Yingli Green Energy Holding Company Limited, together with its subsidiaries, engages in the design, development, manufacture, assembly, sale, and installation of photovoltaic (PV) products and related accessories worldwide. Currently there is 1 analyst that rates Yingli Green Energy Holding Company a buy, no analysts rate it a sell, and 3 rate it a hold.The average volume for Yingli Green Energy Holding Company has been 4.1 million shares per day over the past 30 days. Yingli Green Energy Holding has a market cap of $604.4 million and is part of the technology sector and electronics industry. Shares are up 74.9% year to date as of the close of trading on Wednesday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Yingli Green Energy Holding Company as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk, disappointing return on equity and poor profit margins.Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 119.1% when compared to the same quarter one year ago, falling from -$44.97 million to -$98.50 million.
- The debt-to-equity ratio is very high at 8.68 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, YGE has a quick ratio of 0.50, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- 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 Semiconductors & Semiconductor Equipment industry and the overall market, YINGLI GREEN ENERGY HLDGS CO's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for YINGLI GREEN ENERGY HLDGS CO is currently extremely low, coming in at 4.14%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -22.83% is significantly below that of the industry average.
- YGE, with its decline in revenue, slightly underperformed the industry average of 12.9%. Since the same quarter one year prior, revenues fell by 13.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full Yingli Green Energy Holding Company Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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