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 buy to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and relatively poor performance when compared with the S&P 500 during the past year.
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Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 4.4%. Since the same quarter one year prior, revenues rose by 17.2%. 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.
- Net operating cash flow has slightly increased to -$7.54 million or 7.81% when compared to the same quarter last year. In addition, RAND LOGISTICS INC has also vastly surpassed the industry average cash flow growth rate of -78.26%.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Marine industry and the overall market on the basis of return on equity, RAND LOGISTICS INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Marine industry average. The net income has decreased by 7.0% when compared to the same quarter one year ago, dropping from $3.33 million to $3.10 million.
- Currently the debt-to-equity ratio of 1.89 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with this, the company manages to maintain a quick ratio of 0.41, which clearly demonstrates the inability to cover short-term cash needs.
Rand Logistics, Inc., through its subsidiaries, provides bulk freight shipping services in the Great Lakes region. The company offers domestic port-to-port and River Class bulk freight shipping services in Canada and the United States. The company has a P/E ratio of 23.4, above the S&P 500 P/E ratio of 17.7. Rand Logistics has a market cap of $115.9 million and is part of the services sector and transportation industry. Shares are up 0.5% 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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