NEW YORK (
) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income 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 and generally poor debt management.
Highlights from the ratings report include:
- GBG's revenue growth has slightly outpaced the industry average of 49.0%. Since the same quarter one year prior, revenues rose by 49.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- GREAT BASIN GOLD LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, GREAT BASIN GOLD LTD continued to lose money by earning -$0.09 versus -$0.16 in the prior year.
- 47.10% is the gross profit margin for GREAT BASIN GOLD LTD which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -1.90% is in-line with the industry average.
- GBG has underperformed the S&P 500 Index, declining 6.77% 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.
- Despite currently having a low debt-to-equity ratio of 0.45, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that GBG's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.55 is low and demonstrates weak liquidity.
Great Basin Gold Ltd. engages in the acquisition, exploration, and development of precious metal deposits. It explores for gold, silver, and aggregate. Great Basin has a market cap of $981.2 million and is part of the
industry. Shares are down 34.8% year to date as of the close of trading on Thursday.
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