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NEW YORK (TheStreet) -- Gencor Industries (GENC) - Get Report has been downgraded by TheStreet Ratings from Buy to Hold with a ratings score of C.  TheStreet Ratings Team has this to say about their recommendation:

"We rate GENCOR INDUSTRIES INC (GENC) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 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 good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • GENC 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 24.74, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has significantly increased by 63.66% to -$1.56 million when compared to the same quarter last year. In addition, GENCOR INDUSTRIES INC has also vastly surpassed the industry average cash flow growth rate of -11.19%.
  • The revenue fell significantly faster than the industry average of 1.4%. Since the same quarter one year prior, revenues fell by 37.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • GENCOR INDUSTRIES INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, GENCOR INDUSTRIES INC reported lower earnings of $0.36 versus $0.71 in the prior year.
  • 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 Machinery industry. The net income has significantly decreased by 345.7% when compared to the same quarter one year ago, falling from $0.45 million to -$1.10 million.
  • You can view the full analysis from the report here: GENC Ratings Report