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) -- Endeavour Silver Corporation (NYSE: EXK) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself.
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- ENDEAVOUR SILVER 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, ENDEAVOUR SILVER CORP swung to a loss, reporting -$0.91 versus $0.41 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 881.0% when compared to the same quarter one year ago, falling from $14.82 million to -$115.76 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Metals & Mining industry and the overall market, ENDEAVOUR SILVER CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- The share price of ENDEAVOUR SILVER CORP has not done very well: it is down 21.93% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- Net operating cash flow has increased to $25.30 million or 28.49% when compared to the same quarter last year. In addition, ENDEAVOUR SILVER CORP has also vastly surpassed the industry average cash flow growth rate of -37.88%.