Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Yingli Green Energy Holding Company ( YGE) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Yingli Green Energy Holding Company as such a stock due to the following factors:
- YGE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $50.0 million.
- YGE has traded 10.4 million shares today.
- YGE is down 9.9% today.
- YGE was up 7.4% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in YGE with the Ticky from Trade-Ideas. See the FREE profile for YGE NOW at Trade-Ideas More details on YGE: Yingli Green Energy Holding Company Limited, together with its subsidiaries, engages in the design, development, manufacture, assembly, sale, and installation of photovoltaic (PV) products and related accessories worldwide. Currently there are 2 analysts that rate Yingli Green Energy Holding Company a buy, no analysts rate it a sell, and 1 rates it a hold. The average volume for Yingli Green Energy Holding Company has been 7.7 million shares per day over the past 30 days. Yingli Green Energy Holding has a market cap of $955.2 million and is part of the technology sector and electronics industry. Shares are up 159.6% year to date as of the close of trading on Friday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Yingli Green Energy Holding Company as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity and poor profit margins. Highlights from the ratings report include:
- The debt-to-equity ratio is very high at 11.59 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, YGE has a quick ratio of 0.53, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- 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 Semiconductors & Semiconductor Equipment industry and the overall market, YINGLI GREEN ENERGY HLDGS CO's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for YINGLI GREEN ENERGY HLDGS CO is currently extremely low, coming in at 11.69%. Regardless of YGE's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, YGE's net profit margin of -9.62% significantly underperformed when compared to the industry average.
- This stock has increased by 256.72% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in YGE do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
- YINGLI GREEN ENERGY HLDGS CO has improved earnings per share by 40.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, YINGLI GREEN ENERGY HLDGS CO continued to lose money by earning -$3.13 versus -$3.32 in the prior year. This year, the market expects an improvement in earnings (-$1.35 versus -$3.13).
- You can view the full Yingli Green Energy Holding Company Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.