NEW YORK (TheStreet) -- Shares of Broadwind Energy Inc. (BWEN - Get Report) are higher by 2.65% to $9 at the start of trade on Tuesday following the company's announcement it received an $8 million gear order from its subsidiary, Brad Foote Gear Works Inc., to be delivered in 2015.
Broadwind provides technologically advanced products and services to customers in the energy, mining, and infrastructure sectors.
The latest order brings the company's second quarter gearing order total to almost $19 million, Broadwind said.
TheStreet Ratings team rates BROADWIND ENERGY INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate BROADWIND ENERGY INC (BWEN) 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 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 weak operating cash flow and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 6.5%. Since the same quarter one year prior, revenues rose by 29.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 78.12% and other important driving factors, this stock has surged by 99.10% 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.
- BWEN's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that BWEN's debt-to-equity ratio is low, the quick ratio, which is currently 0.68, displays a potential problem in covering short-term cash needs.
- The gross profit margin for BROADWIND ENERGY INC is currently extremely low, coming in at 14.23%. Regardless of BWEN's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -1.77% trails the industry average.
- Net operating cash flow has significantly decreased to -$12.12 million or 326.65% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: BWEN Ratings Report