Why UQM Technologies (UQM) Is Still a

NEW YORK (TheStreet) -- UQM Technologies (UQM) has been reiterated as a "hold" with a ratings score of C, according to TheStreet Ratings team.

The heavy electrical equipment maker is popping on Tuesday, gaining 23.3% to $2.22 by midafternoon. Trading volume of 3.9 million was more than 12 times its three-month daily average. 

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TheStreet Ratings Team has this to say about their recommendation:

"We rate UQM TECHNOLOGIES INC (UQM) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Powered by its strong earnings growth of 100.00% and other important driving factors, this stock has surged by 160.27% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Auto Components industry. The net income increased by 98.5% when compared to the same quarter one year prior, rising from -$4.56 million to -$0.07 million.
  • The gross profit margin for UQM TECHNOLOGIES INC is rather high; currently it is at 62.42%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -2.64% trails the industry average.
  • UQM TECHNOLOGIES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, UQM TECHNOLOGIES INC reported poor results of -$0.29 versus -$0.14 in the prior year.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Auto Components industry and the overall market, UQM TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.

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