- Currently the debt-to-equity ratio of 1.89 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with the unfavorable debt-to-equity ratio, RGSE maintains a poor quick ratio of 0.97, which illustrates the inability to avoid short-term cash problems.
- The gross profit margin for REAL GOODS SOLAR INC is rather low; currently it is at 19.89%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -8.37% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to -$7.74 million or 271.30% 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, REAL GOODS SOLAR INC's return on equity significantly trails that of both the industry average and the S&P 500.
- This stock has increased by 54.04% 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 RGSE do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
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 Industrial Goods sector as a whole closed the day up 0.3% versus the S&P 500, which was up 0.3%. Laggards within the Industrial Goods sector included Bonso Electronics International ( BNSO), down 4.1%, LGL Group ( LGL), down 3.8%, Tecumseh Products ( TECUB), down 2.0%, WSI Industries ( WSCI), down 1.9% and Industrial Services of America ( IDSA), down 4.6%. TheStreet Ratings Group would like to highlight 3 stocks that pushed the sector lower today: Real Goods Solar ( RGSE) is one of the companies that pushed the Industrial Goods sector lower today. Real Goods Solar was down $0.25 (9.5%) to $2.37 on average volume. Throughout the day, 1,494,161 shares of Real Goods Solar exchanged hands as compared to its average daily volume of 1,916,200 shares. The stock ranged in price between $2.36-$2.60 after having opened the day at $2.55 as compared to the previous trading day's close of $2.62. Real Goods Solar, Inc. operates as a residential and commercial solar energy engineering, procurement, and construction company in the United States. It provides commercial and residential solar energy solutions. Real Goods Solar has a market cap of $134.7 million and is part of the materials & construction industry. Shares are down 13.2% year-to-date as of the close of trading on Thursday. Currently there are 2 analysts who rate Real Goods Solar a buy, no analysts rate it a sell, and none rate 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 Real Goods Solar as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, poor profit margins and weak operating cash flow. Highlights from TheStreet Ratings analysis on RGSE go as follows: