NEW YORK ( TheStreet) -- U.S. Geothermal (AMEX: HTM) has been downgraded by TheStreet Ratings from hold to sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself. Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Independent Power Producers & Energy Traders industry average. The net income increased by 40.9% when compared to the same quarter one year prior, rising from -$1.40 million to -$0.83 million.
- U S GEOTHERMAL INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. However, the consensus estimates suggest that there will be an upward trend in the coming year. During the past fiscal year, U S GEOTHERMAL INC's EPS of -$0.08 remained unchanged from the prior years' EPS of -$0.08. This year, the market expects an improvement in earnings (-$0.03 versus -$0.08).
- Net operating cash flow has significantly increased by 100.51% to $0.01 million when compared to the same quarter last year. Despite an increase in cash flow of 100.51%, U S GEOTHERMAL INC is still growing at a significantly lower rate than the industry average of 153.04%.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Independent Power Producers & Energy Traders industry and the overall market, U S GEOTHERMAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
- HTM has underperformed the S&P 500 Index, declining 16.87% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.