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 reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and poor profit margins.
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Highlights from the ratings report include:
- SYPR's debt-to-equity ratio is very low at 0.12 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.84 is somewhat weak and could be cause for future problems.
- Net operating cash flow has decreased to $5.92 million or 23.52% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- 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 Aerospace & Defense industry. The net income has significantly decreased by 194.4% when compared to the same quarter one year ago, falling from $6.08 million to -$5.74 million.
Sypris Solutions, Inc. provides outsourced services and specialty products primarily in the United States, Mexico, and Denmark. The company has a P/E ratio of 6.1, below the S&P 500 P/E ratio of 17.7. Sypris has a market cap of $77.4 million and is part of the technology sector and electronics industry. Shares are down 2% 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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