NEW YORK ( TheStreet) -- Uroplasty (Nasdaq: UPI) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow and feeble growth in its earnings per share. Highlights from the ratings report include:
- The gross profit margin for UROPLASTY INC is currently very high, coming in at 83.40%. Regardless of UPI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, UPI's net profit margin of -33.10% significantly underperformed when compared to the industry average.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, UROPLASTY INC's return on equity significantly trails that of both the industry average and the S&P 500.
- UROPLASTY INC's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, UROPLASTY INC reported poor results of -$0.24 versus -$0.22 in the prior year. This year, the market expects earnings to be in line with last year (-$0.24 versus -$0.24).
- Net operating cash flow has significantly decreased to -$1.22 million or 7047.05% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- 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 Health Care Equipment & Supplies industry. The net income has significantly decreased by 130.2% when compared to the same quarter one year ago, falling from -$0.58 million to -$1.33 million.