NEW YORK ( TheStreet) -- Forward Industries (Nasdaq: FORD) 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, disappointing return on equity, poor profit margins and weak operating cash flow. Highlights from the ratings report include:
- FORWARD INDUSTRIES INC's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, FORWARD INDUSTRIES INC reported poor results of -$0.20 versus -$0.18 in the prior year.
- 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 Textiles, Apparel & Luxury Goods industry. The net income has significantly decreased by 4117.6% when compared to the same quarter one year ago, falling from $0.02 million to -$0.68 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Textiles, Apparel & Luxury Goods industry and the overall market, FORWARD INDUSTRIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for FORWARD INDUSTRIES INC is rather low; currently it is at 23.70%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -11.10% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to -$0.57 million or 512.40% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.