NEW YORK ( TheStreet) -- Aegean Marine Petroleum Network (NYSE: ANW) 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, generally weak debt management, disappointing return on equity, poor profit margins and weak operating cash flow. 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 Transportation Infrastructure industry. The net income has significantly decreased by 172.3% when compared to the same quarter one year ago, falling from $4.61 million to -$3.33 million.
- The debt-to-equity ratio of 1.49 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, ANW maintains a poor quick ratio of 0.98, which illustrates the inability to avoid short-term cash problems.
- 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 Transportation Infrastructure industry and the overall market on the basis of return on equity, AEGEAN MARINE PETROLM NETWK underperformed against that of the industry average and is significantly less than that of the S&P 500.
- The gross profit margin for AEGEAN MARINE PETROLM NETWK is currently extremely low, coming in at 1.10%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.20% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to -$34.04 million or 329.73% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.