TheStreet Ratings team rates EAGLE BULK SHIPPING INC as a Sell with a ratings score of D. The team has this to say about their recommendation:
"We rate EAGLE BULK SHIPPING INC (EGLE) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, unimpressive growth in net income, disappointing return on equity, poor profit margins and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- EAGLE BULK SHIPPING INC's earnings per share declined by 25.4% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, EAGLE BULK SHIPPING INC reported poor results of -$6.27 versus -$0.92 in the prior year. For the next year, the market is expecting a contraction of 21.3% in earnings (-$7.61 versus -$6.27).
- 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 Marine industry. The net income has significantly decreased by 26.1% when compared to the same quarter one year ago, falling from -$29.84 million to -$37.63 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Marine industry and the overall market, EAGLE BULK SHIPPING INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for EAGLE BULK SHIPPING INC is rather low; currently it is at 23.16%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -96.53% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to -$1.86 million or 145.19% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: EGLE Ratings Report