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, weak operating cash flow and feeble growth in its earnings per share.
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 Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 2278.9% when compared to the same quarter one year ago, falling from -$6.22 million to -$147.87 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 Semiconductors & Semiconductor Equipment industry and the overall market, SUNPOWER CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for SUNPOWER CORP is currently extremely low, coming in at 11.90%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -25.00% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to -$105.87 million or 55.97% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- SUNPOWER CORP has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. 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, SUNPOWER CORP increased its bottom line by earning $1.59 versus $0.32 in the prior year. For the next year, the market is expecting a contraction of 40.3% in earnings ($0.95 versus $1.59).
SunPower Corporation, an integrated solar products and services company, designs, manufactures, and delivers solar electric systems for residential, commercial, and utility-scale power plant customers worldwide. The company has a P/E ratio of 118.1, above the S&P 500 P/E ratio of 17.7. SunPower has a market cap of $1.2 billion and is part of the
industry. Shares are down 10.1% year to date as of the close of trading on Friday.
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