Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model. NEW YORK ( TheStreet) -- United States Antimony Corporation (AMEX: UAMY) has been downgraded by TheStreet Ratings from buy to hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.
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- UAMY'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. To add to this, UAMY has a quick ratio of 1.84, which demonstrates the ability of the company to cover short-term liquidity needs.
- Compared to its price level of one year ago, UAMY is down 28.26% to its most recent closing price of 1.93. Looking ahead, our view is that this company's fundamentals will not have much impact either way, allowing the stock to generally move up or down based on the push and pull of the broad market.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 21.3%. Since the same quarter one year prior, revenues fell by 20.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The gross profit margin for U S ANTIMONY CORP is currently extremely low, coming in at 10.20%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -6.60% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to -$0.19 million or 121.36% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
-- Written by a member of TheStreet Ratings Staff