Global Power Equipment Group Inc Stock Downgraded (GLPW)

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) -- Global Power Equipment Group (Nasdaq: GLPW) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and poor profit margins.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electrical Equipment industry. The net income increased by 93.6% when compared to the same quarter one year prior, rising from -$1.24 million to -$0.08 million.
  • GLPW's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.83, which clearly demonstrates the ability to cover short-term cash needs.
  • GLPW, with its decline in revenue, slightly underperformed the industry average of 1.9%. Since the same quarter one year prior, revenues fell by 10.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Net operating cash flow has significantly decreased to $1.61 million or 81.10% 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 has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Electrical Equipment industry and the overall market, GLOBAL POWER EQUIPMENT GROUP's return on equity is significantly below that of the industry average and is below that of the S&P 500.

Global Power Equipment Group Inc. provides customer-engineered equipment, and modification and maintenance services primarily in the United States, Canada, Europe, Mexico, Asia, the Middle East, and South America. Global Power Equipment Group has a market cap of $296.6 million and is part of the industrial goods sector and industrial industry. Shares are down 16.2% year to date as of the close of trading on Wednesday.

You can view the full Global Power Equipment Group Ratings Report or get investment ideas from our investment research center.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

If you liked this article you might like

8 Stocks Under $10 to Trade for Big Gains

8 Stocks Under $10 to Trade for Big Gains

Cash Dividend On The Way From Global Power Equipment Group (GLPW)

Cash Dividend On The Way From Global Power Equipment Group (GLPW)

4 Stocks Rising on Unusual Volume

4 Stocks Rising on Unusual Volume

Global Power Equipment Group Inc. Stock Upgraded (GLPW)

Global Power Equipment Group Inc. Stock Upgraded (GLPW)