NEW YORK ( TheStreet) -- Concord Medical Services Holdings (NYSE: CCM) has been downgraded by TheStreet Ratings from hold to sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself. Highlights from the ratings report include:
- CCM'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 39.24%, 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. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Health Care Providers & Services industry and the overall market, CONCORD MEDICAL SVCS -ADR's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Health Care Providers & Services industry average. The net income increased by 19.8% when compared to the same quarter one year prior, going from $5.00 million to $5.98 million.
- The gross profit margin for CONCORD MEDICAL SVCS -ADR is currently very high, coming in at 92.90%. Regardless of CCM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CCM's net profit margin of 29.70% significantly outperformed against the industry.
- CCM's debt-to-equity ratio is very low at 0.04 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.07, which clearly demonstrates the ability to cover short-term cash needs.
-- Written by a member of TheStreet Ratings Staff