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) -- Taseko Mines (AMEX: TGB) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins, weak operating cash flow, feeble growth in its earnings per share and generally disappointing historical performance in the stock itself.
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- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, TASEKO MINES LTD underperformed against that of the industry average and is significantly less than that of the S&P 500.
- The gross profit margin for TASEKO MINES LTD is rather low; currently it is at 19.50%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -10.77% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to -$12.93 million or 266.05% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- TASEKO MINES LTD reported flat earnings per share in the most recent quarter. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, TASEKO MINES LTD swung to a loss, reporting -$0.08 versus $0.13 in the prior year.
- TGB'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 33.02%, which is also worse than the performance of the S&P 500 Index. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
-- Written by a member of TheStreet Ratings Staff