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"We rate UCP INC (UCP) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, poor profit margins and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- UCP INC's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. For the next year, the market is expecting a contraction of 52.0% in earnings (-$0.38 versus -$0.25).
- 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 Household Durables industry. The net income has significantly decreased by 4340.0% when compared to the same quarter one year ago, falling from -$0.02 million to -$0.67 million.
- The gross profit margin for UCP INC is rather low; currently it is at 16.99%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.19% trails that of the industry average.
- Net operating cash flow has significantly decreased to -$20.06 million or 83.32% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- Compared to other companies in the Household Durables industry and the overall market, UCP INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: UCP Ratings Report
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