Solitario Exploration & Royalty Corporation Stock Downgraded (XPL)

NEW YORK ( TheStreet) -- Solitario Exploration & Royalty Corporation (AMEX: XPL) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and poor profit margins.

Highlights from the ratings report include:
  • The gross profit margin for SOLITARIO EXPLORATION & RLTY is currently extremely low, coming in at 0.00%. XPL has continued with the weak profit margin when compared to the same quarter of last year.
  • Net operating cash flow has significantly decreased to -$1.65 million or 325.13% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • 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 Metals & Mining industry and the overall market, SOLITARIO EXPLORATION & RLTY's return on equity significantly trails that of both the industry average and the S&P 500.
  • 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 Metals & Mining industry. The net income has significantly decreased by 388.6% when compared to the same quarter one year ago, falling from $0.65 million to -$1.88 million.
  • SOLITARIO EXPLORATION & RLTY has exprienced 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. During the past fiscal year, SOLITARIO EXPLORATION & RLTY reported poor results of -$0.14 versus -$0.06 in the prior year.

Solitario Exploration & Royalty Corp., an exploration stage company, engages in the exploration and acquisition of precious metals and base metals in Brazil, Mexico, Peru, and Bolivia. The company primarily explores for gold, silver, platinum, palladium, copper, lead, and zinc metals. Solitario Exploration & Royalty has a market cap of $104.2 million and is part of the basic materials sector and metals & mining industry. Shares are down 4.1% year to date as of the close of trading on Friday.

You can view the full Solitario Exploration & Royalty Ratings Report or get investment ideas from our investment research center.

null

More from Markets

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Video: You Could Live in a Ritz-Carlton or St. Regis Home

Video: You Could Live in a Ritz-Carlton or St. Regis Home