NEW YORK ( TheStreet) -- BTU International (Nasdaq: BTUI) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, 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 Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 9915.0% when compared to the same quarter one year ago, falling from -$0.02 million to -$2.00 million.
  • This stock's share value has moved by only 59.06% over the past year. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • BTU INTERNATIONAL INC's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. 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, BTU INTERNATIONAL INC turned its bottom line around by earning $0.24 versus -$1.58 in the prior year. For the next year, the market is expecting a contraction of 189.6% in earnings (-$0.22 versus $0.24).
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, BTU INTERNATIONAL INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • 37.70% is the gross profit margin for BTU INTERNATIONAL INC which we consider to be strong. Regardless of BTUI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BTUI's net profit margin of -11.90% significantly underperformed when compared to the industry average.

BTU International, Inc. engages in the design, manufacture, sale, and service of thermal processing systems used in various manufacturing processes primarily in the electronics, alternative energy, and automotive industries worldwide. The company has a P/E ratio of 12.6, below the average electronics industry P/E ratio of 13.3 and below the S&P 500 P/E ratio of 17.7. BTU International has a market cap of $25.1 million and is part of the technology sector and electronics industry. Shares are down 68.7% year to date as of the close of trading on Monday.

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