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 (
) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and feeble growth in its earnings per share.
- EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.
Highlights from the ratings report include:
- 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 Commercial Services & Supplies industry and the overall market, ENERNOC INC's return on equity significantly trails that of both the industry average and the S&P 500.
- ENERNOC INC's earnings per share declined by 5.7% in the most recent quarter compared to 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, ENERNOC INC reported poor results of -$0.91 versus -$0.58 in the prior year. This year, the market expects an improvement in earnings ($0.64 versus -$0.91).
- The change in net income from the same quarter one year ago has significantly exceeded that of the Commercial Services & Supplies industry average, but is less than that of the S&P 500. The net income has decreased by 10.2% when compared to the same quarter one year ago, dropping from -$27.71 million to -$30.54 million.
- 47.90% is the gross profit margin for ENERNOC INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -92.95% is in-line with the industry average.
- Net operating cash flow has significantly increased by 3706.38% to $6.78 million when compared to the same quarter last year. In addition, ENERNOC INC has also vastly surpassed the industry average cash flow growth rate of -20.98%.
EnerNOC, Inc. provides energy management applications, services, and products for the smart grid, which include demand response, data-driven energy efficiency, energy price and risk management, and enterprise carbon management applications. EnerNOC has a market cap of $358.1 million and is part of the services sector and diversified services industry. Shares are up 5.2% year to date as of the close of trading on Wednesday.
You can view the full
or get investment ideas from our
-- Written by a member of TheStreet Ratings Staff
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.