Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model
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 deteriorating net income, disappointing return on equity, poor profit margins and feeble growth in its earnings per share.
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Highlights from the ratings report include:
- 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 Capital Markets industry. The net income has significantly decreased by 2591.5% when compared to the same quarter one year ago, falling from $0.20 million to -$4.98 million.
- 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 Capital Markets industry and the overall market, LADENBURG THALMANN FINL SERV's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for LADENBURG THALMANN FINL SERV is currently extremely low, coming in at 2.90%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -3.00% is significantly below that of the industry average.
- LADENBURG THALMANN FINL SERV's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. 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, LADENBURG THALMANN FINL SERV turned its bottom line around by earning $0.01 versus -$0.07 in the prior year. For the next year, the market is expecting a contraction of 600.0% in earnings (-$0.05 versus $0.01).
- This stock's share value has moved by only 25.00% over the past year. 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.
Ladenburg Thalmann Financial Services Inc., an investment bank, through its subsidiaries, provides independent brokerage and advisory services primarily to corporate and institutional clients, and high net-worth individuals in the United States. Ladenburg Thalman Financial Services has a market cap of $238.8 million and is part of the financial sector and financial services industry. Shares are down 47.6% year to date as of the close of trading on Tuesday.
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-- Written by a member of TheStreet Ratings Staff
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