NEW YORK (
) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- PESI's very impressive revenue growth greatly exceeded the industry average of 2.4%. Since the same quarter one year prior, revenues leaped by 61.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The gross profit margin for PERMA-FIX ENVIRONMENTAL SVCS is currently extremely low, coming in at 11.30%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -2.80% trails that of the industry average.
- 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 Commercial Services & Supplies industry. The net income has significantly decreased by 227.1% when compared to the same quarter one year ago, falling from -$0.32 million to -$1.05 million.
Perma-Fix Environmental Services, Inc., through its subsidiaries, operates as an environmental and technology know-how company in the United States. It operates in two segments, Treatment and Services. The company has a P/E ratio of 6.1, above the average materials & construction industry P/E ratio of 5.1 and below the S&P 500 P/E ratio of 17.7. Perma-Fix Environmental Services has a market cap of $68.4 million and is part of the
industry. Shares are down 25.8% year to date as of the close of trading on Wednesday.
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-- Written by a member of TheStreet Ratings Staff
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.