NEW YORK ( TheStreet) -- Fushi Copperweld (Nasdaq: FSIN) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, unimpressive growth in net income and disappointing return on equity. Highlights from the ratings report include:
- FSIN's debt-to-equity ratio is very low at 0.02 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 11.57, which clearly demonstrates the ability to cover short-term cash needs.
- FSIN, with its decline in revenue, slightly underperformed the industry average of 2.9%. Since the same quarter one year prior, revenues slightly dropped by 5.7%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The gross profit margin for FUSHI COPPERWELD INC is currently lower than what is desirable, coming in at 26.30%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 7.80% trails that of the industry average.
- Net operating cash flow has significantly decreased to $7.12 million or 52.61% 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.
-- Written by a member of TheStreet Ratings Staff