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NEW YORK (TheStreet) -- GrafTech International (GTI) shares are down 19.7% to $5.84 on Wednesday, continuing the drop it experienced in after-hours trading yesterday, after the company lowered its full year 2014 guidance.

The graphite electrodes manufacturer lowered its EBITDA target range to between $105 million and $115 million, down from its previous estimate of between $135 million and $150 million.

The company now also expects operating cash flow between $95 million and $110 million, down from its previous $125 million to $140 million range.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings team rates GRAFTECH INTERNATIONAL LTD as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

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TheStreet Recommends

"We rate GRAFTECH INTERNATIONAL LTD (GTI) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The current debt-to-equity ratio, 0.47, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.06, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has significantly increased by 632.18% to $33.81 million when compared to the same quarter last year. In addition, GRAFTECH INTERNATIONAL LTD has also vastly surpassed the industry average cash flow growth rate of 3.11%.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 6.5%. Since the same quarter one year prior, revenues slightly dropped by 5.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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 Electrical Equipment industry and the overall market, GRAFTECH INTERNATIONAL LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for GRAFTECH INTERNATIONAL LTD is rather low; currently it is at 21.20%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -54.69% is significantly below that of the industry average.
  • You can view the full analysis from the report here: GTI Ratings Report

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