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 Trina Solar as such a stock due to the following factors:
- TSL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $86.0 million.
- TSL has traded 729,531 shares today.
- TSL is down 3.2% today.
- TSL was up 8.3% yesterday.
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More details on TSL:
Trina Solar Limited operates as an integrated solar-power products manufacturer and solar system developer in the People's Republic of China, Europe, the United States, and other Asia Pacific regions. Currently there are 5 analysts that rate Trina Solar a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Trina Solar has been 5.5 million shares per day over the past 30 days. Trina Solar has a market cap of $954.6 million and is part of the technology sector and electronics industry. Shares are up 4.9% year-to-date as of the close of trading on Thursday.
rates Trina Solar as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins.
Highlights from the ratings report include:
- TSL's very impressive revenue growth greatly exceeded the industry average of 4.1%. Since the same quarter one year prior, revenues leaped by 70.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- TRINA SOLAR LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, TRINA SOLAR LTD continued to lose money by earning -$1.02 versus -$3.76 in the prior year. This year, the market expects an improvement in earnings ($0.90 versus -$1.02).
- The gross profit margin for TRINA SOLAR LTD is rather low; currently it is at 20.57%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, TSL's net profit margin of 5.95% is significantly lower than the industry average.
- The debt-to-equity ratio of 1.16 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, TSL has a quick ratio of 0.60, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- You can view the full Trina Solar Ratings Report.