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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 disappointing return on equity, weak operating cash flow, poor profit margins, generally disappointing historical performance in the stock itself and deteriorating net income.
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Highlights from the ratings report include:
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, INVACARE CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$6.88 million or 228.84% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The gross profit margin for INVACARE CORP is currently lower than what is desirable, coming in at 30.98%. Regardless of IVC's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, IVC's net profit margin of -4.10% significantly underperformed when compared to the industry average.
- IVC has underperformed the S&P 500 Index, declining 5.99% 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.
- The change in net income from the same quarter one year ago has exceeded that of the Health Care Equipment & Supplies industry average, but is less than that of the S&P 500. The net income has decreased by 9.2% when compared to the same quarter one year ago, dropping from -$12.46 million to -$13.61 million.
Invacare Corporation designs, manufactures, and distributes medical equipment and supplies worldwide. The company operates through four segments: North America/Home Medical Equipment, Institutional Products Group, Europe, and Asia/Pacific. Invacare has a market cap of $483.9 million and is part of the health care sector and health services industry. Shares are down 32.9% year to date as of the close of trading on Friday.
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