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The Chemicals industry as a whole closed the day up 0.3% versus the S&P 500, which was down 0.7%. Laggards within the Chemicals industry included

Gevo

(

GEVO

), down 7.3%,

OCI Partners

(

OCIP

), down 3.9%,

KMG Chemicals

(

KMG

), down 2.4%,

Omnova Solutions

(

OMN

), down 2.5% and

Landec

(

LNDC

), down 1.8%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

KMG Chemicals

(

KMG

) is one of the companies that pushed the Chemicals industry lower today. KMG Chemicals was down $0.50 (2.4%) to $20.25 on light volume. Throughout the day, 5,993 shares of KMG Chemicals exchanged hands as compared to its average daily volume of 40,200 shares. The stock ranged in price between $20.08-$20.81 after having opened the day at $20.81 as compared to the previous trading day's close of $20.75.

KMG Chemicals, Inc., through its subsidiaries, engages in the manufacture, formulation, and distribution of specialty chemicals in the United States, Mexico, Canada, Europe, Israel, and Singapore. It operates in two segments, Electronic Chemicals and Wood Treating Chemicals. KMG Chemicals has a market cap of $244.6 million and is part of the basic materials sector. Shares are up 22.9% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates KMG Chemicals a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates

KMG Chemicals

as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and solid stock price performance. 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 TheStreet Ratings analysis on KMG go as follows:

  • The current debt-to-equity ratio, 0.48, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.01, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has significantly increased by 140.22% to $9.59 million when compared to the same quarter last year. In addition, KMG CHEMICALS INC has also vastly surpassed the industry average cash flow growth rate of 10.84%.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. 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.
  • 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 greatly underperformed compared to the Chemicals industry average. The net income has decreased by 12.4% when compared to the same quarter one year ago, dropping from $1.35 million to $1.19 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Chemicals industry and the overall market, KMG CHEMICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here:

KMG Chemicals Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

At the close,

OCI Partners

(

OCIP

) was down $0.64 (3.9%) to $15.75 on average volume. Throughout the day, 43,514 shares of OCI Partners exchanged hands as compared to its average daily volume of 42,000 shares. The stock ranged in price between $15.51-$16.51 after having opened the day at $16.44 as compared to the previous trading day's close of $16.39.

OCI Partners LP produces and sells methanol and ammonia in the United States. It sells its products to industrial users and commercial traders for further processing or distribution. OCI GP LLC operates as the general partner of the company. OCI Partners has a market cap of $1.2 billion and is part of the basic materials sector. Shares are down 40.6% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate OCI Partners a buy, 1 analyst rates it a sell, and 1 rates it a hold.

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TheStreet Ratings rates

OCI Partners

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and generally high debt management risk.

Highlights from TheStreet Ratings analysis on OCIP go as follows:

  • 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 Chemicals industry. The net income has decreased by 22.9% when compared to the same quarter one year ago, dropping from $24.13 million to $18.60 million.
  • The debt-to-equity ratio is very high at 3.30 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, OCIP's quick ratio is somewhat strong at 1.11, demonstrating the ability to handle short-term liquidity needs.
  • OCIP, with its decline in revenue, underperformed when compared the industry average of 9.4%. Since the same quarter one year prior, revenues slightly dropped by 5.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • OCI PARTNERS LP's earnings per share declined by 23.3% in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings ($1.44 versus $0.91).
  • Looking at the price performance of OCIP's shares over the past 12 months, there is not much good news to report: the stock is down 41.20%, 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.

You can view the full analysis from the report here:

OCI Partners Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Gevo

(

GEVO

) was another company that pushed the Chemicals industry lower today. Gevo was down $0.02 (7.3%) to $0.30 on average volume. Throughout the day, 782,220 shares of Gevo exchanged hands as compared to its average daily volume of 827,200 shares. The stock ranged in price between $0.27-$0.33 after having opened the day at $0.33 as compared to the previous trading day's close of $0.33.

Gevo, Inc., a renewable chemicals and biofuels company, focuses primarily on the production and sale of isobutanol and related products from renewable feedstocks. Gevo has a market cap of $34.4 million and is part of the basic materials sector. Shares are down 77.0% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts who rate Gevo a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates

Gevo

as a

sell

. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Highlights from TheStreet Ratings analysis on GEVO go as follows:

  • GEVO's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 71.54%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, GEVO INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to -$7.39 million or 41.06% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -1.92%.
  • The debt-to-equity ratio is somewhat low, currently at 0.68, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, GEVO has a quick ratio of 1.52, which demonstrates the ability of the company to cover short-term liquidity needs.
  • GEVO INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, GEVO INC continued to lose money by earning -$1.49 versus -$2.01 in the prior year. This year, the market expects an improvement in earnings (-$0.68 versus -$1.49).

You can view the full analysis from the report here:

Gevo Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.