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Why Maxwell Technologies (MXWL) Stock Is Advancing Today

Stocks in this article: MXWL

NEW YORK (TheStreet) -- Shares of Maxwell Technologies Inc. (MXWL) are higher by 4.14% to $9.80 in late morning trading on Tuesday, after the company announced that Win Inertia, an engineering firm that specializes in power electronics, energy storage, control and communications systems, is using Maxwell's ultracapacitors for a rail system project in Cerro Negro, Spain.

Ultracapacitors store energy in an electric field, unlike batteries which produce and store energy through a chemical reaction, enabling ultracapacitors to charge and discharge in as little as a fraction of a second, Maxwell Technologies said. 

Maxwell technologies is a developer, manufacturer, and marketer of energy storage and power delivery products for transportation, industrial, information technology, and other applications and microelectronic products for space and satellite applications.

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The company said Win Inertia will use its ultracapacitors for a stationary wayside breaking energy recuperation system at an electric rail system in Spain.

The recuperation system will use Win Inertia's SHAD hybrid control technology to integrate batteries and Maxwell's ultracapacitors to increase energy recovery efficiency and reduce stress on the batteries, extending battery life, the company said.

Separately, TheStreet Ratings team rates MAXWELL TECHNOLOGIES INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate MAXWELL TECHNOLOGIES INC (MXWL) 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 largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • MXWL's debt-to-equity ratio is very low at 0.07 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.40, which illustrates the ability to avoid short-term cash problems.
  • 42.28% is the gross profit margin for MAXWELL TECHNOLOGIES INC which we consider to be strong. Regardless of MXWL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -2.56% trails the industry average.
  • MXWL, with its decline in revenue, underperformed when compared the industry average of 8.8%. Since the same quarter one year prior, revenues fell by 17.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • MAXWELL TECHNOLOGIES INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, MAXWELL TECHNOLOGIES INC reported lower earnings of $0.22 versus $0.25 in the prior year. For the next year, the market is expecting a contraction of 168.2% in earnings (-$0.15 versus $0.22).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 134.7% when compared to the same quarter one year ago, falling from $3.41 million to -$1.18 million.
  • You can view the full analysis from the report here: MXWL Ratings Report

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