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. NEW YORK ( TheStreet) -- Primero Mining (NYSE: PPP) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.
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- Compared to its price level of one year ago, PPP is up 17.92% to its most recent closing price of 6.71. Looking ahead, our view is that this company's fundamentals should not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
- PPP's revenue growth has slightly outpaced the industry average of 8.7%. Since the same quarter one year prior, revenues slightly increased by 9.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The gross profit margin for PRIMERO MINING CORP is rather high; currently it is at 50.78%. Regardless of PPP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PPP's net profit margin of -75.19% significantly underperformed when compared to the industry average.
- PRIMERO MINING CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, PRIMERO MINING CORP reported lower earnings of $0.00 versus $0.51 in the prior year.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 2983.1% when compared to the same quarter one year ago, falling from $1.25 million to -$35.90 million.