- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 31.5% when compared to the same quarter one year ago, falling from -$13.18 million to -$17.33 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 Oil, Gas & Consumable Fuels industry and the overall market, GEVO INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Looking at the price performance of GEVO's shares over the past 12 months, there is not much good news to report: the stock is down 46.07%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- GEVO, with its decline in revenue, slightly underperformed the industry average of 3.1%. Since the same quarter one year prior, revenues fell by 11.9%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- GEVO INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GEVO INC continued to lose money by earning -$1.49 versus -$2.01 in the prior year. This year, the market expects an improvement in earnings (-$0.69 versus -$1.49).
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. The three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 20 points (0.1%) at 16,715 as of Tuesday, May 13, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,363 issues advancing vs. 1,697 declining with 123 unchanged. The Chemicals industry as a whole closed the day down 0.4% versus the S&P 500, which was unchanged. Top gainers within the Chemicals industry included Metabolix ( MBLX), up 8.3%, Methes Energies International ( MEIL), up 9.2%, Valhi ( VHI), up 2.0%, Lightbridge ( LTBR), up 1.7% and Gevo ( GEVO), up 2.0%. TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today: Gevo ( GEVO) is one of the companies that pushed the Chemicals industry higher today. Gevo was up $0.02 (2.0%) to $1.02 on light volume. Throughout the day, 607,218 shares of Gevo exchanged hands as compared to its average daily volume of 1,282,300 shares. The stock ranged in a price between $0.98-$1.04 after having opened the day at $1.02 as compared to the previous trading day's close of $1.00. Gevo, Inc., a renewable chemicals and biofuels company, focuses primarily on the production and sale of isobutanol and related products from renewable feedstocks. Gevo has a market cap of $61.7 million and is part of the basic materials sector. Shares are down 30.1% year-to-date as of the close of trading on Monday. Currently there are 2 analysts who rate Gevo a buy, no analysts rate it a sell, and 1 rates it a hold. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings rates Gevo as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself. Highlights from TheStreet Ratings analysis on GEVO go as follows: