NEW YORK ( TheStreet) -- Seacor Holdings Inc (NYSE: CKH) has been downgraded by TheStreet Ratings from buy to hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:
  • Despite currently having a low debt-to-equity ratio of 0.38, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that CKH's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.76 is high and demonstrates strong liquidity.
  • The revenue fell significantly faster than the industry average of 21.8%. Since the same quarter one year prior, revenues fell by 41.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • SEACOR HOLDINGS 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, SEACOR HOLDINGS INC increased its bottom line by earning $11.50 versus $6.54 in the prior year. For the next year, the market is expecting a contraction of 67.0% in earnings ($3.80 versus $11.50).
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Energy Equipment & Services industry and the overall market, SEACOR HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for SEACOR HOLDINGS INC is rather low; currently it is at 16.80%. It has decreased significantly from the same period last year. Along with this, the net profit margin of 0.70% significantly trails the industry average.

SEACOR Holdings Inc. owns, operates, invests in, and markets equipment, primarily in the offshore oil and gas, industrial aviation, and marine transportation industries worldwide. The company has a P/E ratio of 9.6, above the average transportation industry P/E ratio of 9.4 and below the S&P 500 P/E ratio of 17.7. Seacor has a market cap of $1.9 billion and is part of the services sector and transportation industry. Shares are down 14.2% year to date as of the close of trading on Monday.

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

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