NEW YORK (
-- Active Power
) has been downgraded by TheStreet Ratings from hold to sell. Among the areas we feel are negative, one of the most important has been poor profit margins.
Highlights from the ratings report include:
- The gross profit margin for ACTIVE POWER INC is rather low; currently it is at 24.10%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -7.30% is significantly below that of the industry average.
- 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 Electrical Equipment industry and the overall market, ACTIVE POWER INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Electrical Equipment industry average. The net income increased by 9.2% when compared to the same quarter one year prior, going from -$1.54 million to -$1.39 million.
- ACTIVE POWER INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ACTIVE POWER INC continued to lose money by earning -$0.06 versus -$0.17 in the prior year. This year, the market expects an improvement in earnings (-$0.04 versus -$0.06).
- Compared to its closing price of one year ago, ACPW's share price has jumped by 40.86%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in ACPW do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
Active Power, Inc., together with its subsidiaries, designs, manufactures, and markets critical power quality solutions. Active has a market cap of $117 million and is part of the
industry. Shares are down 34.1% year to date as of the close of trading on Tuesday.
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