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 UTi Worldwide as such a stock due to the following factors:
- UTIW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.7 million.
- UTIW has traded 66,211 shares today.
- UTIW is down 12.1% today.
- UTIW was up 20.3% yesterday.
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More details on UTIW:
UTi Worldwide Inc., through its subsidiaries, provides non-asset-based supply chain services and solutions worldwide. It operates in two segments, Freight Forwarding, and Contract Logistics and Distribution. Currently there are 2 analysts that rate UTi Worldwide a buy, no analysts rate it a sell, and 8 rate it a hold.
The average volume for UTi Worldwide has been 982,800 shares per day over the past 30 days. UTi Worldwide has a market cap of $1.2 billion and is part of the services sector and transportation industry. The stock has a beta of 0.27 and a short float of 18.5% with 14.08 days to cover. Shares are down 34.3% year-to-date as of the close of trading on Tuesday.
rates UTi Worldwide as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins 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 a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- The debt-to-equity ratio is somewhat low, currently at 0.63, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.47, which illustrates the ability to avoid short-term cash problems.
- 36.77% is the gross profit margin for UTI WORLDWIDE INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -1.55% trails the industry average.
- UTI WORLDWIDE INC 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, UTI WORLDWIDE INC continued to lose money by earning -$0.73 versus -$0.98 in the prior year. This year, the market expects an improvement in earnings (-$0.10 versus -$0.73).
- 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 Air Freight & Logistics industry. The net income has significantly decreased by 281.3% when compared to the same quarter one year ago, falling from -$4.44 million to -$16.94 million.
- Net operating cash flow has significantly decreased to -$2.95 million or 150.00% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full UTi Worldwide Ratings Report.