NEW YORK ( TheStreet) -- UQM Technologies (AMEX: UQM) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share. 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 Electrical Equipment industry. The net income has significantly decreased by 114.4% when compared to the same quarter one year ago, falling from -$0.49 million to -$1.04 million.
- Net operating cash flow has significantly decreased to -$2.48 million or 63.02% 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 share price of UQM TECHNOLOGIES INC has not done very well: it is down 12.50% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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.
- UQM TECHNOLOGIES INC 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, UQM TECHNOLOGIES INC continued to lose money by earning -$0.06 versus -$0.12 in the prior year. For the next year, the market is expecting a contraction of 66.7% in earnings (-$0.10 versus -$0.06).
- 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 Electrical Equipment industry and the overall market, UQM TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.