NEW YORK ( TheStreet) -- Great Panther Silver (AMEX: GPL) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive. 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 Metals & Mining industry. The net income has decreased by 24.6% when compared to the same quarter one year ago, dropping from $1.04 million to $0.78 million.
- Compared to its closing price of one year ago, GPL's share price has jumped by 345.45%, exceeding the performance of the broader market during that same time frame. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
- GREAT PANTHER SILVER LTD reported flat earnings per share in the most recent quarter. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, GREAT PANTHER SILVER LTD turned its bottom line around by earning $0.04 versus -$0.01 in the prior year.
- GPL's debt-to-equity ratio is very low at 0.13 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.60, which clearly demonstrates the ability to cover short-term cash needs.
- GPL's revenue growth has slightly outpaced the industry average of 35.3%. Since the same quarter one year prior, revenues rose by 40.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.