- CHINA PHARMA HOLDINGS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, CHINA PHARMA HOLDINGS INC swung to a loss, reporting -$0.45 versus $0.10 in the prior year.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Pharmaceuticals industry. The net income has significantly decreased by 738.4% when compared to the same quarter one year ago, falling from -$1.24 million to -$10.43 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 Pharmaceuticals industry and the overall market, CHINA PHARMA HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- CPHI, with its decline in revenue, underperformed when compared the industry average of 5.3%. Since the same quarter one year prior, revenues fell by 27.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- CPHI's debt-to-equity ratio is very low at 0.13 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 4.30, which clearly demonstrates the ability to cover short-term cash needs.
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. All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 69 points (0.4%) at 16,675 as of Tuesday, May 27, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,940 issues advancing vs. 1,055 declining with 160 unchanged. The Drugs industry as a whole closed the day up 2.0% versus the S&P 500, which was up 0.6%. Top gainers within the Drugs industry included ImmuCell ( ICCC), up 2.3%, Celator Pharmaceuticals ( CPXX), up 6.0%, Cyanotech ( CYAN), up 2.6%, Redhill Biopharma ( RDHL), up 1.5% and China Pharma ( CPHI), up 5.2%. TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today: China Pharma ( CPHI) is one of the companies that pushed the Drugs industry higher today. China Pharma was up $0.02 (5.2%) to $0.38 on average volume. Throughout the day, 208,410 shares of China Pharma exchanged hands as compared to its average daily volume of 224,500 shares. The stock ranged in a price between $0.35-$0.39 after having opened the day at $0.36 as compared to the previous trading day's close of $0.36. China Pharma Holdings, Inc. develops, manufactures, and markets generic and branded pharmaceutical, and biochemical products to hospitals and private retailers in the People's Republic of China. China Pharma has a market cap of $15.8 million and is part of the health care sector. Shares are up 5.1% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate China Pharma 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 China Pharma as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and disappointing return on equity. Highlights from TheStreet Ratings analysis on CPHI go as follows: