NEW YORK (TheStreet) -- The Pep Boys
(PBY) stock is plummeting, down -15.4% to $10.31 in trading on Tuesday.
The drop follows the company's release of its fourth quarter and full year 2013 earnings report.
Must read: Warren Buffett's 10 Favorite Growth Stocks
The company reported a loss of 6 cents per share in the fourth quarter ended February 1. The loss missed analysts EPS estimates of a 5 cent profit per share.
Year over year revenues for the quarter were down 6.6% to $495.7 million from $530.8 million.
The company's stock has hit an 11 month low following yesterday's report.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 114.3% when compared to the same quarter one year prior, rising from -$6.76 million to $0.97 million.
- Net operating cash flow has slightly increased to $31.66 million or 9.99% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -6.80%.
- The current debt-to-equity ratio, 0.36, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.12 is very weak and demonstrates a lack of ability to pay short-term obligations.
- The gross profit margin for PEP BOYS-MANNY MOE & JACK is currently lower than what is desirable, coming in at 28.12%. Regardless of PBY's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.19% trails the industry average.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Specialty Retail industry and the overall market, PEP BOYS-MANNY MOE & JACK's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: PBY Ratings Report
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