Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified E-House China Holdings as such a stock due to the following factors:
- EJ has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.5 million.
- EJ has traded 345,460 shares today.
- EJ is down 3.1% today.
- EJ was up 9.8% yesterday.
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More details on EJ:
E-House (China) Holdings Limited, through its subsidiaries, operates as a real estate services company primarily in the People's Republic of China. The stock currently has a dividend yield of 3.9%. EJ has a PE ratio of 24.9. Currently there are 2 analysts that rate E-House China Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for E-House China Holdings has been 1.5 million shares per day over the past 30 days. E-House China has a market cap of $1.3 billion and is part of the financial sector and real estate industry. Shares are down 40.2% year-to-date as of the close of trading on Tuesday.
rates E-House China Holdings as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- EJ's revenue growth has slightly outpaced the industry average of 7.3%. Since the same quarter one year prior, revenues rose by 11.8%. 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.
- EJ's debt-to-equity ratio is very low at 0.13 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.90, which clearly demonstrates the ability to cover short-term cash needs.
- E-HOUSE CHINA HOLDINGS -ADR 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, E-HOUSE CHINA HOLDINGS -ADR turned its bottom line around by earning $0.36 versus -$0.59 in the prior year. This year, the market expects an improvement in earnings ($0.64 versus $0.36).
- The gross profit margin for E-HOUSE CHINA HOLDINGS -ADR is rather high; currently it is at 64.39%. Regardless of EJ's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, EJ's net profit margin of 2.32% is significantly lower than the industry average.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Real Estate Management & Development industry and the overall market, E-HOUSE CHINA HOLDINGS -ADR's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full E-House China Holdings Ratings Report.