Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model
NEW YORK (
-- CUI Global
) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow and feeble growth in its earnings per share.
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Highlights from the ratings report include:
- 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 Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 223.5% when compared to the same quarter one year ago, falling from -$0.22 million to -$0.72 million.
- Net operating cash flow has significantly decreased to -$1.12 million or 539.37% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- CUI GLOBAL INC's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. 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, CUI GLOBAL INC turned its bottom line around by earning $0.00 versus -$1.20 in the prior year. This year, the market expects a decline in earnings from $0.00 to -$0.03.
- 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 Electronic Equipment, Instruments & Components industry and the overall market, CUI GLOBAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
- 39.50% is the gross profit margin for CUI GLOBAL INC which we consider to be strong. Regardless of CUI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CUI's net profit margin of -7.10% significantly underperformed when compared to the industry average.
CUI Global, Inc., through its subsidiaries, engages in the acquisition, development, and commercialization of electronic technologies/products. CUI Global has a market cap of $66.2 million and is part of the
industry. Shares are unchanged year to date as of the close of trading on Tuesday.
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-- Written by a member of TheStreet Ratings Staff