Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

The Industrial Goods sector as a whole was unchanged today versus the S&P 500, which was unchanged. Laggards within the Industrial Goods sector included

American DG Energy

(

ADGE

), down 7.2%,

Asia Pacific Wire & Cable

(

APWC

), down 3.7%,

India Globalization Capital

(

IGC

), down 3.4%,

Compx International

(

CIX

), down 4.6% and

Taylor Devices

(

TAYD

), down 2.0%.

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

Embraer S.A

(

ERJ

) is one of the companies that pushed the Industrial Goods sector lower today. Embraer S.A was down $1.95 (6.8%) to $26.58 on heavy volume. Throughout the day, 2,578,383 shares of Embraer S.A exchanged hands as compared to its average daily volume of 800,300 shares. The stock ranged in price between $25.73-$27.67 after having opened the day at $27.56 as compared to the previous trading day's close of $28.53.

Embraer S.A. designs, develops, manufactures, and sells aircraft and systems; and provides technical support and after-sales service in Brazil, North America, Latin America, the Asia Pacific, Europe, and internationally. Embraer S.A has a market cap of $5.2 billion and is part of the aerospace/defense industry. Shares are down 22.6% year-to-date as of the close of trading on Wednesday. Currently there are 6 analysts who rate Embraer S.A a buy, no analysts rate it a sell, and 4 rate it a hold.

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TheStreet Ratings rates

Embraer S.A

as a

hold

. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on ERJ go as follows:

  • The debt-to-equity ratio is somewhat low, currently at 0.76, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.96 is somewhat weak and could be cause for future problems.
  • ERJ, with its decline in revenue, underperformed when compared the industry average of 4.2%. Since the same quarter one year prior, revenues fell by 15.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • EMBRAER SA 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. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, EMBRAER SA reported lower earnings of $1.82 versus $1.86 in the prior year. This year, the market expects an improvement in earnings ($1.96 versus $1.82).
  • 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 Aerospace & Defense industry. The net income has significantly decreased by 155.8% when compared to the same quarter one year ago, falling from $110.60 million to -$61.70 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 26.54%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 156.66% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.

You can view the full analysis from the report here:

Embraer S.A Ratings Report

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At the close,

Compx International

(

CIX

) was down $0.54 (4.6%) to $11.16 on average volume. Throughout the day, 951 shares of Compx International exchanged hands as compared to its average daily volume of 800 shares. The stock ranged in price between $11.16-$11.41 after having opened the day at $11.38 as compared to the previous trading day's close of $11.70.

CompX International Inc. engages in the manufacture and sale of security products and recreational marine components primarily in North America. The company operates through two segments, Security Products and Marine Components. Compx International has a market cap of $27.6 million and is part of the aerospace/defense industry. Shares are down 3.2% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates

Compx International

as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and increase in net income. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from TheStreet Ratings analysis on CIX go as follows:

  • The revenue growth came in higher than the industry average of 3.8%. Since the same quarter one year prior, revenues slightly increased by 8.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • CIX 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. Along with this, the company maintains a quick ratio of 5.13, which clearly demonstrates the ability to cover short-term cash needs.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • COMPX INTERNATIONAL INC has improved earnings per share by 11.8% 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. During the past fiscal year, COMPX INTERNATIONAL INC increased its bottom line by earning $0.70 versus $0.49 in the prior year.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Commercial Services & Supplies industry average. The net income increased by 12.8% when compared to the same quarter one year prior, going from $2.14 million to $2.41 million.

You can view the full analysis from the report here:

Compx International Ratings Report

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India Globalization Capital

(

IGC

) was another company that pushed the Industrial Goods sector lower today. India Globalization Capital was down $0.01 (3.4%) to $0.29 on light volume. Throughout the day, 17,880 shares of India Globalization Capital exchanged hands as compared to its average daily volume of 30,100 shares. The stock ranged in price between $0.29-$0.32 after having opened the day at $0.32 as compared to the previous trading day's close of $0.30.

India Globalization Capital, Inc., through its subsidiaries, engages in trading electronics; and the rental of heavy equipment in Hong Kong and India. India Globalization Capital has a market cap of $4.9 million and is part of the aerospace/defense industry. Shares are down 51.0% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates

India Globalization Capital

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on IGC go as follows:

  • 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 Electronic Equipment, Instruments & Components industry average. The net income has significantly decreased by 31.0% when compared to the same quarter one year ago, falling from -$1.46 million to -$1.92 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 Electronic Equipment, Instruments & Components industry and the overall market, INDIA GLOBALIZATION CAPITAL's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for INDIA GLOBALIZATION CAPITAL is currently extremely low, coming in at 5.41%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -85.01% is significantly below that of the industry average.
  • IGC'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 70.38%, 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.
  • IGC's debt-to-equity ratio is very low at 0.22 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.74 is somewhat weak and could be cause for future problems.

You can view the full analysis from the report here:

India Globalization Capital Ratings Report

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