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 "dead cat bounce" (down big yesterday but up 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 $17.0 million.
- UTIW has traded 847,744 shares today.
- UTIW is up 3% today.
- UTIW was down 6% yesterday.
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More details on UTIW:
UTi Worldwide Inc. provides supply chain services and solutions worldwide. It operates in two segments, Freight Forwarding and Contract Logistics and Distribution. The stock currently has a dividend yield of 0.5%. Currently there are 2 analysts that rate UTi Worldwide a buy, no analysts rate it a sell, and 9 rate it a hold.
The average volume for UTi Worldwide has been 1.2 million 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 0.92 and a short float of 4.1% with 5.42 days to cover. Shares are down 39.7% year-to-date as of the close of trading on Monday.
rates UTi Worldwide as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
Highlights from the ratings report include:
- 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 186.0% when compared to the same quarter one year ago, falling from $10.55 million to -$9.08 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Air Freight & Logistics industry and the overall market, UTI WORLDWIDE INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for UTI WORLDWIDE INC is currently lower than what is desirable, coming in at 34.09%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.78% trails that of the industry average.
- The share price of UTI WORLDWIDE INC has not done very well: it is down 24.67% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- 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. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, UTI WORLDWIDE INC swung to a loss, reporting -$0.98 versus $0.70 in the prior year. This year, the market expects an improvement in earnings ($0.02 versus -$0.98).
- You can view the full UTi Worldwide Ratings Report.