NEW YORK (TheStreet) --Shares of Lumber Liquidators Holdings Inc. (LL) - Get Report are lower by 1.23% to $28.16 in mid-morning trading on Monday, following a New York Daily News report stating that Senator Chuck Schumer (D-NY) is requesting a federal investigation into the safety of the Chinese made wood laminate flooring sold by the company.

Schumer believes the Consumer Product Safety Commission needs to begin investigating and testing the flooring in question in order to determine if it is safe and issue recalls if it is not.

Lumber Liquidators has been under fire since a "60 Minutes" report alleged that the wood flooring retailer sells materials out of China that hold greater than allowed amounts of the carcinogenic chemical formaldehyde.

Lumber Liquidators has since defending its products saying they are safe.

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

"We rate LUMBER LIQUIDATORS HLDGS INC (LL) 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, reasonable valuation levels and good cash flow from operations. 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:

• Despite its growing revenue, the company underperformed as compared with the industry average of 13.0%. Since the same quarter one year prior, revenues slightly increased by 5.2%. 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.
• LL has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.14 is very weak and demonstrates a lack of ability to pay short-term obligations.
• LUMBER LIQUIDATORS HLDGS INC's earnings per share declined by 13.5% in the most recent quarter compared to 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, LUMBER LIQUIDATORS HLDGS INC reported lower earnings of $2.31 versus $2.77 in the prior year. For the next year, the market is expecting a contraction of 26.4% in earnings ($1.70 versus $2.31).
• 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 Specialty Retail industry. The net income has decreased by 16.6% when compared to the same quarter one year ago, dropping from $20.80 million to $17.35 million.
• You can view the full analysis from the report here: LL Ratings Report