What To Sell: 3 Sell-Rated Dividend Stocks APTS, DCIX, STB
Student Transportation (NASDAQ: STB) shares currently have a dividend yield of 8.30%. Student Transportation Inc. provides school bus transportation services in North America. The company operates through two segments Transportation, and Oil and Gas. The Transportation segment provides school bus management services to public and private schools in North America. The company has a P/E ratio of 153.75. The average volume for Student Transportation has been 114,600 shares per day over the past 30 days. Student Transportation has a market cap of $502.6 million and is part of the diversified services industry. Shares are down 0.7% year-to-date as of the close of trading on Thursday. TheStreet Ratings rates Student Transportation as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, deteriorating net income, disappointing return on equity, weak operating cash flow and poor profit margins. Highlights from the ratings report include:
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, STB has underperformed the S&P 500 Index, declining 5.53% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
- 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 Road & Rail industry. The net income has decreased by 15.5% when compared to the same quarter one year ago, dropping from -$7.61 million to -$8.79 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 Road & Rail industry and the overall market, STUDENT TRANSPORTATION INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to -$21.11 million or 30.16% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- The gross profit margin for STUDENT TRANSPORTATION INC is currently extremely low, coming in at 9.36%. Regardless of STB's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, STB's net profit margin of -12.02% significantly underperformed when compared to the industry average.
- You can view the full Student Transportation Ratings Report.
- Our dividend calendar.
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