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NEW YORK (TheStreet) -- S&W Seed (SANW) - Get S&W Seed Company Report has been upgraded by TheStreet Ratings from Sell to Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate S&W SEED CO (SANW) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 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, poor profit margins and a generally disappointing performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 1.1%. Since the same quarter one year prior, revenues rose by 20.4%. 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 significantly increased by 177.03% to $4.64 million when compared to the same quarter last year. In addition, S&W SEED CO has also vastly surpassed the industry average cash flow growth rate of -26.86%.
- S&W SEED CO has experienced 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. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, S&W SEED CO turned its bottom line around by earning $0.03 versus -$0.26 in the prior year. This year, the market expects an improvement in earnings ($0.04 versus $0.03).
- 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 Food Products industry. The net income has significantly decreased by 1502.7% when compared to the same quarter one year ago, falling from $0.11 million to -$1.54 million.
- The gross profit margin for S&W SEED CO is currently extremely low, coming in at 14.22%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -11.18% is significantly below that of the industry average.
- You can view the full analysis from the report here: SANW Ratings Report