TheStreet Ratings team rates TRINA SOLAR LTD as a Sell with a ratings score of D. The team has this to say about their recommendation:
"We rate TRINA SOLAR LTD (TSL) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The debt-to-equity ratio of 1.37 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, TSL has a quick ratio of 0.70, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- The gross profit margin for TRINA SOLAR LTD is rather low; currently it is at 15.21%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, TSL's net profit margin of 1.80% is significantly lower than the industry average.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, TRINA SOLAR LTD's return on equity significantly trails that of both the industry average and the S&P 500.
- TRINA SOLAR LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TRINA SOLAR LTD reported poor results of -$3.76 versus -$0.58 in the prior year. This year, the market expects an improvement in earnings (-$1.17 versus -$3.76).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 117.2% when compared to the same quarter one year prior, rising from -$57.46 million to $9.90 million.
- You can view the full analysis from the report here: TSL Ratings Report