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NEW YORK (
-- Fuel Tech
) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.
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Highlights from the ratings report include:
- This stock has managed to rise its share value by 34.10% over the past twelve months. Although FTEK had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Services & Supplies industry. The net income increased by 1500.0% when compared to the same quarter one year prior, rising from -$0.03 million to $0.41 million.
- 46.00% is the gross profit margin for FUEL TECH 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 1.67% trails the industry average.
- FUEL TECH INC has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, FUEL TECH INC increased its bottom line by earning $0.22 versus $0.11 in the prior year. For the next year, the market is expecting a contraction of 54.5% in earnings ($0.10 versus $0.22).
- 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 Commercial Services & Supplies industry and the overall market, FUEL TECH INC's return on equity is below that of both the industry average and the S&P 500.
Fuel Tech, Inc. provides boiler optimization, efficiency improvement, and air pollution reduction and control solutions to utility and industrial customers worldwide. Fuel Tech has a market cap of $119.9 million and is part of the industrial goods sector and industrial industry. Shares are down 25.8% year to date as of the close of trading on Friday.
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