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 generally disappointing historical performance in the stock itself and generally high debt management risk.
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Highlights from the ratings report include:
- EXPR has underperformed the S&P 500 Index, declining 12.82% from its price level of one year ago. 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.
- EXPR's debt-to-equity ratio of 0.67 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that EXPR's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.52 is low and demonstrates weak liquidity.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Specialty Retail industry and the overall market, EXPRESS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- 35.90% is the gross profit margin for EXPRESS INC which we consider to be strong. Regardless of EXPR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 3.50% trails the industry average.
- Net operating cash flow has significantly increased by 170.73% to $28.66 million when compared to the same quarter last year. In addition, EXPRESS INC has also vastly surpassed the industry average cash flow growth rate of -27.40%.
Express, Inc. operates as a specialty apparel and accessory retailer primarily in the United States. Its stores provide apparel and accessories for women and men between 20 and 30 years old across various aspects of the lifestyles comprising work, casual, jeanswear, and going-out occasions. The company has a P/E ratio of 10.2, above the average retail industry P/E ratio of 10 and below the S&P 500 P/E ratio of 17.7. Express has a market cap of $1.48 billion and is part of the
industry. Shares are down 24.6% year to date as of the close of trading on Thursday.
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-- Written by a member of TheStreet Ratings Staff