U.S. Concrete (USCR) Downgraded From Buy to Hold

U.S. Concrete (USCR) has been downgraded by TheStreet Ratings from Buy to Hold with a ratings score of C+.
By TheStreet Quant Ratings ,

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NEW YORK (TheStreet) -- U.S. Concrete (USCR) - Get Report has been downgraded by TheStreet Ratings from Buy to Hold with a ratings score of C+.  TheStreet Ratings Team has this to say about their recommendation:

"We rate U S CONCRETE INC (USCR) 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 robust revenue growth, notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins."

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

  • The revenue growth greatly exceeded the industry average of 21.6%. Since the same quarter one year prior, revenues rose by 21.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The gross profit margin for U S CONCRETE INC is rather low; currently it is at 18.79%. Regardless of USCR'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 0.48% trails the industry average.
  • The debt-to-equity ratio is very high at 2.17 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, USCR's quick ratio is somewhat strong at 1.16, demonstrating the ability to handle short-term liquidity needs.
  • You can view the full analysis from the report here: USCR Ratings Report
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