NEW YORK ( TheStreet) -- Maxwell Technologies (Nasdaq: MXWL) 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:
- MXWL'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 48.32%, 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. 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.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, MAXWELL TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- 45.90% is the gross profit margin for MAXWELL TECHNOLOGIES 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 1.30% trails the industry average.
- Net operating cash flow has slightly increased to -$11.81 million or 7.20% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -4.45%.
- MXWL's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, MXWL has a quick ratio of 1.51, which demonstrates the ability of the company to cover short-term liquidity needs.
-- Written by a member of TheStreet Ratings Staff