NEW YORK (TheStreet) -- JinkoSolar
(JKS - Get Report) shares are down -4% to $25.94 on Wednesday after the Commerce Department levied a set of new duties on Chinese solar panel manufacturers.
The Commerce Department issued a tariffs of 35.21% on solar panels made by Suntech Power and 18.56% on panels made by Trina Solar (TSL - Get Report). Other Chinese solar company's will pay a 26.89% tariff.
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The Chinese government has responded to the new regulations by accusing the U.S. of trade protectionism and abusing trade remedies.
Trina Solar shares are down -2.9% to $12.59 while Yingli Green Energy (YGE - Get Report) shares are down -6.1% to $2.77 today.
TheStreet Ratings team rates JINKOSOLAR HOLDING CO as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:"We rate JINKOSOLAR HOLDING CO (JKS) 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 also find weaknesses including generally higher debt management risk and poor profit margins." Highlights from the analysis by TheStreet Ratings Team goes as follows:
- JKS's very impressive revenue growth greatly exceeded the industry average of 3.1%. Since the same quarter one year prior, revenues leaped by 72.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 79.56% and other important driving factors, this stock has surged by 243.64% 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.
- The gross profit margin for JINKOSOLAR HOLDING CO is rather low; currently it is at 23.99%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, JKS's net profit margin of 0.47% is significantly lower than the industry average.
- The debt-to-equity ratio is very high at 2.15 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, JKS has a quick ratio of 0.67, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- You can view the full analysis from the report here: JKS Ratings Report