NEW YORK ( TheStreet) -- P.A.M. Transportation (Nasdaq: PTSI) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, poor profit margins, 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 Road & Rail industry. The net income has significantly decreased by 247.0% when compared to the same quarter one year ago, falling from -$0.49 million to -$1.70 million.
- The gross profit margin for P.A.M. TRANSPORTATION SVCS is currently extremely low, coming in at 6.10%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.90% is significantly below that of the industry average.
- The share price of P.A.M. TRANSPORTATION SVCS has not done very well: it is down 10.63% 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.
- P.A.M. TRANSPORTATION SVCS 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, P.A.M. TRANSPORTATION SVCS continued to lose money by earning -$0.07 versus -$1.16 in the prior year. For the next year, the market is expecting a contraction of 542.9% in earnings (-$0.45 versus -$0.07).
- PTSI's revenue growth trails the industry average of 13.1%. Since the same quarter one year prior, revenues slightly increased by 2.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.