NEW YORK (TheStreet) -- JA Solar Holdings (JASO - Get Report) stock is gaining Wednesday, pulled higher by positive earnings results from fellow alternative energy developer Trina Solar (TSL - Get Report).
By noon, shares had added 4.9% to $9.72, while Trina Solar spiked 26.8% to $13.14.
Over the three months to March, Trina Solar earned 37 cents a share, 34 cents higher than analysts surveyed by Thomson Reuters expected. However, revenue of $444.8 million was under an estimated $452.55 million.
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TheStreet Ratings team rates JA SOLAR HOLDINGS CO LTD as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate JA SOLAR HOLDINGS CO LTD (JASO) 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 robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 3.9%. Since the same quarter one year prior, revenues rose by 35.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 127.05% and other important driving factors, this stock has surged by 68.00% 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.
- JASO's debt-to-equity ratio of 0.70 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.74 is weak.
- 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 Semiconductors & Semiconductor Equipment industry and the overall market, JA SOLAR HOLDINGS CO LTD's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for JA SOLAR HOLDINGS CO LTD is rather low; currently it is at 16.72%. Regardless of JASO's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, JASO's net profit margin of 3.63% is significantly lower than the industry average.
- You can view the full analysis from the report here: JASO Ratings Report