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, poor profit margins, weak operating cash flow, disappointing return on equity and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Water Utilities industry average. The net income has decreased by 15.4% when compared to the same quarter one year ago, dropping from $1.70 million to $1.44 million.
- The gross profit margin for TRI-TECH HOLDING INC is currently lower than what is desirable, coming in at 27.10%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 7.50% trails that of the industry average.
- Net operating cash flow has significantly decreased to -$8.01 million or 915.46% 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'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 Water Utilities industry and the overall market on the basis of return on equity, TRI-TECH HOLDING INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- Looking at the price performance of TRIT's shares over the past 12 months, there is not much good news to report: the stock is down 37.29%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
Tri-Tech Holding Inc. provides integrated solutions to water resource management and environmental protection industries in the People's Republic of China. The company has a P/E ratio of 5.3, equal to the average materials & construction industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Tri-Tech has a market cap of $41.2 million and is part of the
industry. Shares are up 8.7% year to date as of the close of trading on Tuesday.
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-- Written by a member of TheStreet Ratings Staff