NEW YORK (TheStreet) -- Ballard Power Systems (BLDP) shares are down -11.7% to $3.61 following the release of the company's 2014 first quarter earnings report.
Year over year quarterly revenue increased 13% to $14 million, missing analysts estimates of $17.52 million.
The fuel cell product manufacturer posted net income of $3.8 million, or 3 cents per share, beating analysts estimates by 6 cents.
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TheStreet Ratings team rates BALLARD POWER SYSTEMS INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate BALLARD POWER SYSTEMS INC (BLDP) a SELL. This is driven by several 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. Among the areas we feel are negative, one of the most important has been weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Net operating cash flow has significantly decreased to -$0.87 million or 63.90% 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 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 Electrical Equipment industry and the overall market, BALLARD POWER SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- 43.59% is the gross profit margin for BALLARD POWER SYSTEMS INC which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -13.13% is in-line with the industry average.
- BLDP's debt-to-equity ratio is very low at 0.18 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, BLDP has a quick ratio of 1.73, which demonstrates the ability of the company to cover short-term liquidity needs.
- This stock has increased by 324.97% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in BLDP 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: BLDP Ratings Report