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NEW YORK (TheStreet) -- FutureFuel (FF) - Get FutureFuel Corp. Report has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
TheStreet Ratings team rates FUTUREFUEL CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate FUTUREFUEL CORP (FF) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- FF 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 4.72, which clearly demonstrates the ability to cover short-term cash needs.
- FF, with its decline in revenue, underperformed when compared the industry average of 4.8%. Since the same quarter one year prior, revenues fell by 14.8%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- FUTUREFUEL CORP's earnings per share declined by 25.7% in the most recent quarter compared to the same quarter a year ago. 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, FUTUREFUEL CORP increased its bottom line by earning $1.71 versus $0.82 in the prior year. For the next year, the market is expecting a contraction of 40.0% in earnings ($1.03 versus $1.71).
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 26.32%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 25.71% compared to the year-earlier quarter. Looking ahead, the stock's sharp decline over the past year may have been what was needed in order to bring its value into alignment with its fundamentals and others in its industry.
- You can view the full analysis from the report here: FF Ratings Report