NEW YORK ( TheStreet) -- China Yida (Nasdaq: CNYD) 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, weak operating cash flow and generally disappointing historical performance in the stock itself. Highlights from the ratings report include:
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Media industry and the overall market, CHINA YIDA HOLDING CO's return on equity exceeds that of both the industry average and the S&P 500.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 75.96%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 45.94% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- Net operating cash flow has decreased to $4.60 million or 40.61% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly 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 Media industry. The net income has significantly decreased by 44.5% when compared to the same quarter one year ago, falling from $7.13 million to $3.96 million.
- CHINA YIDA HOLDING CO's earnings per share declined by 45.9% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, CHINA YIDA HOLDING CO reported lower earnings of $1.28 versus $1.45 in the prior year. For the next year, the market is expecting a contraction of 10.2% in earnings ($1.15 versus $1.28).