NEW YORK (TheStreet) -- Shares of Silver Standard Resources Inc. (SSRI - Get Report) closed down -10.38% to $8.41 on Friday after the company reported revenue for the 2014 first quarter declined to $33.7 million, from $49.1 million for the year ago quarter.
The silver resource company said it suffered a net loss of -$16.9 million, or 21 cents per share, compared to the previous year's net loss of -$4.6 million, or 6 cents per share.
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TheStreet Ratings team rates SILVER STANDARD RES INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
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"We rate SILVER STANDARD RES INC (SSRI) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Powered by its strong earnings growth of 27.58% and other important driving factors, this stock has surged by 37.92% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- SSRI's debt-to-equity ratio is very low at 0.22 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 5.85, which clearly demonstrates the ability to cover short-term cash needs.
- The revenue fell significantly faster than the industry average of 7.5%. Since the same quarter one year prior, revenues fell by 43.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The gross profit margin for SILVER STANDARD RES INC is currently lower than what is desirable, coming in at 26.14%. It has decreased significantly from the same period last year. Despite the weak results of the gross profit margin, the net profit margin of 60.81% has significantly outperformed against the industry average.
- 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 Metals & Mining industry and the overall market, SILVER STANDARD RES INC'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: SSRI Ratings Report