This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Why Dynasil Corporation (DYSL) Exploded on Monday

Stock quotes in this article: DYSL

NEW YORK (TheStreet) -- Shares of Dynasil Corporation of America (DYSL) exploded on Monday after the company announced its subsidiary Optometrics Corporation had signed a three-year comprehensive supply agreement with a division of L-3 Communications.

Optometrics will provide high-quality optical components to L-3 Communications, a developer of intelligence, surveillance and reconnaissance technology.

By midmorning, shares had soared 55.8% to $1.90. Trading volume of 2.9 million was more than 43 times its three-month daily average.

"It is an important piece of business for us, which will bring Optometrics' technology to a highly technical and competitive industry. Optometrics' creative approach to product development and production scale-up were key determinants in the selection process," said Dynasil CEO Peter Sulick in a statement.

The company expects to deliver more than $4 million in product to L-3 over the life of the agreement and will add approximately 15 new jobs at Optometrics to scale production.

Must Read: Why the Netflix-Comcast Agreement is Such a Big Deal

TheStreet Ratings team rates DYNASIL CORP OF AMERICA as a Sell with a ratings score of E+. The team has this to say about their recommendation:

"We rate DYNASIL CORP OF AMERICA (DYSL) a SELL. This is based on a variety of negative investment measures, which should drive this stock to significantly underperform the majority of stocks that we rate. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally high debt management risk."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • 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 Electronic Equipment, Instruments & Components industry and the overall market, DYNASIL CORP OF AMERICA's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite currently having a low debt-to-equity ratio of 0.51, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.50 is very low and demonstrates very weak liquidity.
  • DYNASIL CORP OF AMERICA reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, DYNASIL CORP OF AMERICA reported poor results of -$0.59 versus -$0.29 in the prior year.
  • 44.03% is the gross profit margin for DYNASIL CORP OF AMERICA which we consider to be strong. Regardless of DYSL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, DYSL's net profit margin of 13.61% compares favorably to the industry average.
  • Net operating cash flow has significantly increased by 173.09% to $0.16 million when compared to the same quarter last year. In addition, DYNASIL CORP OF AMERICA has also vastly surpassed the industry average cash flow growth rate of -9.33%.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,835.76 -207.14 -1.22%
S&P 500 1,954.78 -17.51 -0.89%
NASDAQ 4,440.4550 -52.9350 -1.18%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs