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NEW YORK (TheStreet) -- Alpha Pro Tech (APT) - Get Alpha Pro Tech, Ltd. 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 ALPHA PRO TECH LTD (APT) 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 revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- APT's revenue growth has slightly outpaced the industry average of 1.7%. Since the same quarter one year prior, revenues slightly increased by 4.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- APT 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 7.22, which clearly demonstrates the ability to cover short-term cash needs.
- ALPHA PRO TECH LTD reported flat earnings per share in the most recent quarter. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, ALPHA PRO TECH LTD increased its bottom line by earning $0.11 versus $0.05 in the prior year.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Building Products industry and the overall market, ALPHA PRO TECH LTD's return on equity is below that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to $1.81 million or 15.04% when compared to the same quarter last year. Despite a decrease in cash flow of 15.04%, ALPHA PRO TECH LTD is in line with the industry average cash flow growth rate of -21.61%.
- You can view the full analysis from the report here: APT Ratings Report