NEW YORK ( TheStreet) -- Frozen Food Express Industries (Nasdaq: FFEX) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and weak operating cash flow. Highlights from the ratings report include:
- Net operating cash flow has significantly decreased to -$2.31 million or 63.99% 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 gross profit margin for FROZEN FOOD EXPRESS INDS is currently extremely low, coming in at 0.20%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -3.30% is significantly below that of the industry average.
- FROZEN FOOD EXPRESS INDS has improved earnings per share by 26.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, FROZEN FOOD EXPRESS INDS continued to lose money by earning -$0.70 versus -$0.96 in the prior year.
- Despite its growing revenue, the company underperformed as compared with the industry average of 16.0%. Since the same quarter one year prior, revenues slightly increased by 6.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Road & Rail industry average. The net income increased by 25.3% when compared to the same quarter one year prior, rising from -$4.43 million to -$3.31 million.