3 Chemicals Stocks Driving The Industry Higher
- The revenue growth greatly exceeded the industry average of 11.3%. Since the same quarter one year prior, revenues rose by 47.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 240.89% to $7.79 million when compared to the same quarter last year. In addition, KMG CHEMICALS INC has also vastly surpassed the industry average cash flow growth rate of 37.62%.
- The debt-to-equity ratio is somewhat low, currently at 0.66, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.88 is somewhat weak and could be cause for future problems.
- 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 Chemicals industry and the overall market, KMG CHEMICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The share price of KMG CHEMICALS INC has not done very well: it is down 23.07% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
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