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.