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TheStreet Ratings team rates AIRMEDIA GROUP INC -ADS as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate AIRMEDIA GROUP INC -ADS (AMCN) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes 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 Media industry. The net income has significantly decreased by 56.7% when compared to the same quarter one year ago, falling from -$3.54 million to -$5.54 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Media industry and the overall market, AIRMEDIA GROUP INC -ADS's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for AIRMEDIA GROUP INC -ADS is currently extremely low, coming in at 10.01%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -8.90% is significantly below that of the industry average.
- The share price of AIRMEDIA GROUP INC -ADS has not done very well: it is down 7.73% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- AIRMEDIA GROUP INC -ADS 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, AIRMEDIA GROUP INC -ADS continued to lose money by earning -$0.18 versus -$0.53 in the prior year. For the next year, the market is expecting a contraction of 71.1% in earnings (-$0.31 versus -$0.18).
- You can view the full analysis from the report here: AMCN Ratings Report