NEW YORK ( TheStreet) -- Advanced Photonix (AMEX: API) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • Net operating cash flow has significantly decreased to $0.06 million or 89.77% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • API's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 56.17%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • 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. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, ADVANCED PHOTONIX INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • 46.00% is the gross profit margin for ADVANCED PHOTONIX INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -3.00% trails the industry average.
  • ADVANCED PHOTONIX INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ADVANCED PHOTONIX INC continued to lose money by earning -$0.08 versus -$0.14 in the prior year. This year, the market expects an improvement in earnings (-$0.06 versus -$0.08).

Advanced Photonix, Inc. engages in the development and manufacture of optoelectronic devices and sub-systems, and systems. Advanced Photonix has a market cap of $20.4 million and is part of the technology sector and electronics industry. Shares are down 59.3% year to date as of the close of trading on Wednesday.

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

If you liked this article you might like

3 Electronics Stocks Driving The Industry Higher

3 Electronics Stocks Driving The Industry Higher

3 Stocks Pushing The Technology Sector Lower

3 Stocks Pushing The Technology Sector Lower

3 Stocks Pushing The Electronics Industry Lower

3 Stocks Pushing The Electronics Industry Lower

3 Electronics Stocks Driving The Industry Higher

3 Electronics Stocks Driving The Industry Higher

3 Electronics Stocks Moving The Industry Upward

3 Electronics Stocks Moving The Industry Upward