NEW YORK ( TheStreet) -- Marten Transport (Nasdaq: MRTN) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins. Highlights from the ratings report include:
- MRTN's revenue growth has slightly outpaced the industry average of 16.4%. Since the same quarter one year prior, revenues rose by 20.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- MRTN has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, MRTN has a quick ratio of 1.63, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for MARTEN TRANSPORT LTD is rather low; currently it is at 16.20%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 4.10% significantly trails the industry average.
- MRTN has underperformed the S&P 500 Index, declining 22.02% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.