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NEW YORK (TheStreet) -- Saexploration Holdings (SAEX) has been downgraded by TheStreet Ratings from Hold to Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SAEXPLORATION HOLDINGS INC (SAEX) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and generally high debt management risk."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The gross profit margin for SAEXPLORATION HOLDINGS INC is rather low; currently it is at 21.15%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.14% is significantly below that of the industry average.
- The debt-to-equity ratio is very high at 8.20 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, SAEX's quick ratio is somewhat strong at 1.23, demonstrating the ability to handle short-term liquidity needs.
- Compared to other companies in the Energy Equipment & Services industry and the overall market, SAEXPLORATION HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- SAEX has underperformed the S&P 500 Index, declining 24.45% from its price level of one year ago.
- SAEXPLORATION HOLDINGS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings ($0.74 versus -$2.10).
- You can view the full analysis from the report here: SAEX Ratings Report