NEW YORK (TheStreet) -- Shares of Park Electrochemical Corp. (PKE - Get Report) are higher by 2.38% to $28.78 in late-morning trading on Tuesday after the company reported an increase in net income to $8.6 million, or 39 cents per share for the 2014 first quarter, compared to $5.1 million, or 24 cents per share for the 2013 first quarter.
The global advanced materials company posted net sales of $48.8 million for the most recent quarter, compared to $43.4 million for the same period last year.
Separately, TheStreet Ratings team rates PARK ELECTROCHEMICAL CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate PARK ELECTROCHEMICAL CORP (PKE) 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 increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
- Despite currently having a low debt-to-equity ratio of 0.52, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 12.10 is very high and demonstrates very strong liquidity.
- 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 Electronic Equipment, Instruments & Components industry and the overall market, PARK ELECTROCHEMICAL CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for PARK ELECTROCHEMICAL CORP is currently lower than what is desirable, coming in at 29.44%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -157.33% is significantly below that of the industry average.
- You can view the full analysis from the report here: PKE Ratings Report