NEW YORK ( TheStreet) -- Tsakos Energy Navigation (NYSE: TNP) 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, generally weak debt management, disappointing return on equity and poor profit margins. Highlights from the ratings report include:
- Currently the debt-to-equity ratio of 1.52 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, TSAKOS ENERGY NAVIGATION LTD's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for TSAKOS ENERGY NAVIGATION LTD is currently lower than what is desirable, coming in at 32.50%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -17.90% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to $7.82 million or 68.09% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- TSAKOS ENERGY NAVIGATION LTD has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, TSAKOS ENERGY NAVIGATION LTD reported lower earnings of $0.54 versus $0.78 in the prior year. For the next year, the market is expecting a contraction of 204.6% in earnings (-$0.57 versus $0.54).