NEW YORK (TheStreet) -- China Bak Battery (CBAK) popped to a one-year high of $3.95 as of 12:12 p.m. EST on Friday as the company soared in sympathy with the strength of battery-related companies throughout the week.
Tesla (TSLA) has also provided a boost to battery stocks this week, as the electric car maker soared to an all-time high of $265. China Bak is up 76% this week, while its peer companies also rose in previous days. Plug Power (PLUG) rose 30% for the week, FuelCell (FCEL) climbed 22%, Ballard Power Systems (BLDP) soared 56% and ZBB Energy (ZBB) popped 28%.
TheStreet Ratings team rates CHINA BAK BATTERY INC as a "sell" with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHINA BAK BATTERY INC (CBAK) a SELL. This is driven by a few notable weaknesses, 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 feeble growth in its earnings per share, deteriorating net income and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- CHINA BAK BATTERY INC 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, CHINA BAK BATTERY INC reported poor results of -$9.18 versus -$5.20 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 Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 178.9% when compared to the same quarter one year ago, falling from -$20.76 million to -$57.90 million.
- Net operating cash flow has significantly decreased to -$19.53 million or 170.63% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The revenue fell significantly faster than the industry average of 4.2%. Since the same quarter one year prior, revenues fell by 40.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Compared to its closing price of one year ago, CBAK's share price has jumped by 55.55%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in CBAK do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
- You can view the full analysis from the report here: CBAK Ratings Report