Perilous Reversal Watch: Maxwell Technologies (MXWL)

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 Maxwell Technologies ( MXWL) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Maxwell Technologies as such a stock due to the following factors:

  • MXWL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.3 million.
  • MXWL has traded 104,402 shares today.
  • MXWL is down 7.6% today.
  • MXWL was up 22.8% yesterday.

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More details on MXWL:

Maxwell Technologies, Inc., together with its subsidiaries, develops, manufactures, and markets energy storage and power delivery products, and microelectronic products worldwide. MXWL has a PE ratio of 48.1. Currently there is 1 analyst that rates Maxwell Technologies a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Maxwell Technologies has been 386,900 shares per day over the past 30 days. Maxwell has a market cap of $313.4 million and is part of the technology sector and electronics industry. The stock has a beta of 1.01 and a short float of 15.1% with 2.28 days to cover. Shares are up 36.3% year-to-date as of the close of trading on Tuesday.

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 Maxwell Technologies as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

Highlights from the ratings report include:
  • MXWL's debt-to-equity ratio is very low at 0.06 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.37, which illustrates the ability to avoid short-term cash problems.
  • 43.07% is the gross profit margin for MAXWELL TECHNOLOGIES INC which we consider to be strong. Regardless of MXWL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MXWL's net profit margin of -7.21% significantly underperformed when compared to the industry average.
  • MAXWELL TECHNOLOGIES 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. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, MAXWELL TECHNOLOGIES INC reported lower earnings of $0.22 versus $0.25 in the prior year. For the next year, the market is expecting a contraction of 54.5% in earnings ($0.10 versus $0.22).
  • 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 198.2% when compared to the same quarter one year ago, falling from $2.87 million to -$2.81 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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Strong On High Volume: Maxwell Technologies (MXWL)