NEW YORK ( TheStreet) -- Rogers Corporation (NYSE: ROG) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.
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- Net operating cash flow has significantly increased by 89.84% to -$2.03 million when compared to the same quarter last year. In addition, ROGERS CORP has also vastly surpassed the industry average cash flow growth rate of -1.82%.
- Despite currently having a low debt-to-equity ratio of 0.38, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that ROG's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.92 is high and demonstrates strong liquidity.
- 35.40% is the gross profit margin for ROGERS CORP which we consider to be strong. Regardless of ROG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -1.50% trails the industry average.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 29.38%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 114.92% compared to the year-earlier 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.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, ROGERS CORP's return on equity is below that of both the industry average and the S&P 500.
-- Written by a member of TheStreet Ratings Staff