NEW YORK ( TheStreet) -- Golden Minerals (AMEX: AUMN) 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 and weak operating cash flow.

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 significantly decreased by 126.2% when compared to the same quarter one year ago, falling from -$7.04 million to -$15.93 million.
  • Net operating cash flow has significantly decreased to -$13.58 million or 252.92% 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'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 Metals & Mining industry and the overall market, GOLDEN MINERALS CO's return on equity significantly trails that of both the industry average and the S&P 500.
  • AUMN, with its very weak revenue results, has greatly underperformed against the industry average of 50.3%. Since the same quarter one year prior, revenues plummeted by 98.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • GOLDEN MINERALS CO has improved earnings per share by 31.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GOLDEN MINERALS CO swung to a loss, reporting -$4.05 versus $74.75 in the prior year. This year, the market expects an improvement in earnings (-$1.06 versus -$4.05).

Golden Minerals Company engages in the exploration and development of precious metals and other mineral properties in Mexico and South America. It explores for gold, silver, copper, zinc, and lead ores. Golden has a market cap of $196.2 million and is part of the basic materials sector and metals & mining industry. Shares are down 57.8% year to date as of the close of trading on Tuesday.

You can view the full Golden Ratings Report or get investment ideas from our investment research center.
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