- 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 Commercial Services & Supplies industry and the overall market, METALICO INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to $4.23 million or 43.36% 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.
- MEA has underperformed the S&P 500 Index, declining 23.98% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The gross profit margin for METALICO INC is currently extremely low, coming in at 7.75%. Regardless of MEA's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -2.56% trails the industry average.
- MEA, with its decline in revenue, slightly underperformed the industry average of 4.0%. Since the same quarter one year prior, revenues slightly dropped by 1.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
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 Industrial industry as a whole closed the day up 1.0% versus the S&P 500, which was up 0.6%. Top gainers within the Industrial industry included LGL Group ( LGL), up 3.9%, Lime Energy ( LIME), up 3.1%, Highway Holdings ( HIHO), up 2.5%, Metalico ( MEA), up 1.6% and Marine Products ( MPX), up 2.8%. TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today: Metalico ( MEA) is one of the companies that pushed the Industrial industry higher today. Metalico was up $0.02 (1.6%) to $1.30 on heavy volume. Throughout the day, 204,127 shares of Metalico exchanged hands as compared to its average daily volume of 134,800 shares. The stock ranged in a price between $1.25-$1.33 after having opened the day at $1.28 as compared to the previous trading day's close of $1.28. Metalico, Inc., through its subsidiaries, is engaged in scrap metal recycling and lead metal product fabricating businesses. Metalico has a market cap of $61.7 million and is part of the industrial goods sector. Shares are down 38.2% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Metalico 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 Metalico as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and poor profit margins. Highlights from TheStreet Ratings analysis on MEA go as follows: