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) -- First Majestic Silver (NYSE: AG) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
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- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, AG has underperformed the S&P 500 Index, declining 22.78% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
- FIRST MAJESTIC SILVER CORP' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, FIRST MAJESTIC SILVER CORP reported lower earnings of $0.78 versus $0.98 in the prior year.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Metals & Mining industry and the overall market, FIRST MAJESTIC SILVER CORP's return on equity exceeds that of both the industry average and the S&P 500.
- The gross profit margin for FIRST MAJESTIC SILVER CORP is rather high; currently it is at 66.60%. Regardless of AG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, AG's net profit margin of 31.47% significantly outperformed against the industry.
- Net operating cash flow has significantly increased by 142.24% to $48.19 million when compared to the same quarter last year. In addition, FIRST MAJESTIC SILVER CORP has also vastly surpassed the industry average cash flow growth rate of -50.24%.
-- Written by a member of TheStreet Ratings Staff