Why Courier (CRRC) Stock Is Declining On Wednesday

NEW YORK (TheStreet) -- Shares of Courier Corporation (CRRC) are down -2.86% to $13.58 on Wednesday after the company reported revenue was $61.4 million for the 2014 second quarter, off slightly from the $61.8 million for the 2013 second quarter.

The book manufacturer said net loss for the most recent quarter was -$3.4 million, or -30 cents per diluted share, compared to its net income of $366,000, or 3 cents per diluted share for the year ago quarter.

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TheStreet Ratings team rates COURIER CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate COURIER CORP (CRRC) 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 revenue growth, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow."

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

  • CRRC's revenue growth has slightly outpaced the industry average of 4.5%. Since the same quarter one year prior, revenues rose by 12.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • CRRC's debt-to-equity ratio is very low at 0.20 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 1.22, which illustrates the ability to avoid short-term cash problems.
  • The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The gross profit margin for COURIER CORP is currently lower than what is desirable, coming in at 32.06%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 3.63% trails that of the industry average.
  • Net operating cash flow has declined marginally to $9.51 million or 4.22% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • You can view the full analysis from the report here: CRRC Ratings Report
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