NEW YORK (TheStreet) -- Hydrogenics (HYGS - Get Report) stock is tumbling in pre-market trading after the hydrogen energy developer announced a public offering of 1.5 million common shares (1 million from treasury and 500,000 secondary shares by CommScope, a selling shareholder).
Before market open, shares had tumbled 21.9% to $15.30.
Hydrogenics priced the offering at $15 a share. The company said net proceeds are expected to total $13.7 million after deducting underwriting commissions and other expenses and will be used for general corporate purposes, including to support any negative cash flows from operating activities. Hydrogenics will receive no proceeds from the sale of shares by CommScope.
- Net operating cash flow has significantly decreased to -$2.05 million or 135.67% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The gross profit margin for HYDROGENICS CORP is currently lower than what is desirable, coming in at 25.91%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, HYGS's net profit margin of -28.18% significantly underperformed when compared to the industry average.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Electrical Equipment industry and the overall market, HYDROGENICS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- The current debt-to-equity ratio, 0.37, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.79 is somewhat weak and could be cause for future problems.
- The net income growth from the same quarter one year ago has exceeded that of the Electrical Equipment industry average, but is less than that of the S&P 500. The net income increased by 8.5% when compared to the same quarter one year prior, going from -$3.39 million to -$3.10 million.
- You can view the full analysis from the report here: HYGS Ratings Report