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 good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.
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Highlights from the ratings report include:
- Net operating cash flow has significantly increased by 89.84% to -$2.03 million when compared to the same quarter last year. In addition, ROGERS CORP has also vastly surpassed the industry average cash flow growth rate of -1.82%.
- Despite currently having a low debt-to-equity ratio of 0.38, 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 ROG's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.92 is high and demonstrates strong liquidity.
- 35.40% is the gross profit margin for ROGERS CORP which we consider to be strong. Regardless of ROG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -1.50% trails the industry average.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 29.38%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 114.92% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
- 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. When compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, ROGERS CORP's return on equity is below that of both the industry average and the S&P 500.
Rogers Corporation, together with its subsidiaries, engages in the development, manufacture, and distribution of specialty materials and components worldwide. The company has a P/E ratio of 18.8, below the average consumer non-durables industry P/E ratio of 22.7 and above the S&P 500 P/E ratio of 17.7. Rogers has a market cap of $565.8 million and is part of the
industry. Shares are down 5.8% year to date as of the close of trading on Thursday.
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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.