3 Stocks Pushing The Materials & Construction Industry Lower
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Construction & Engineering industry average. The net income has decreased by 16.6% when compared to the same quarter one year ago, dropping from -$23.78 million to -$27.73 million.
- 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 Construction & Engineering industry and the overall market, LAYNE CHRISTENSEN CO's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for LAYNE CHRISTENSEN CO is rather low; currently it is at 15.21%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -14.49% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to -$12.69 million or 217.48% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- Looking at the price performance of LAYN's shares over the past 12 months, there is not much good news to report: the stock is down 41.16%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
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