- 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 Media industry and the overall market, RLJ ENTERTAINMENT INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for RLJ ENTERTAINMENT INC is rather low; currently it is at 23.47%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -3.59% is significantly below that of the industry average.
- RLJE has underperformed the S&P 500 Index, declining 11.67% 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.
- RLJ ENTERTAINMENT INC has improved earnings per share by 44.0% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, RLJ ENTERTAINMENT INC reported poor results of -$2.30 versus -$0.49 in the prior year.
- RLJE, with its decline in revenue, underperformed when compared the industry average of 14.9%. Since the same quarter one year prior, revenues slightly dropped by 4.0%. 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. Two out of the three major indices traded up today The three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 8 points (0.1%) at 16,707 as of Friday, May 30, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,211 issues advancing vs. 1,772 declining with 147 unchanged. The Services sector as a whole closed the day down 0.2% versus the S&P 500, which was up 0.1%. Top gainers within the Services sector included Birks Group ( BGI), up 1.7%, China Yida ( CNYD), up 5.4%, VirtualScopics ( VSCP), up 3.8%, RLJ Entertainment ( RLJE), up 5.3% and Point 360 ( PTSX), up 3.4%. TheStreet Ratings Group would like to highlight 3 stocks pushing the sector higher today: RLJ Entertainment ( RLJE) is one of the companies that pushed the Services sector higher today. RLJ Entertainment was up $0.19 (5.3%) to $3.80 on light volume. Throughout the day, 1,902 shares of RLJ Entertainment exchanged hands as compared to its average daily volume of 6,700 shares. The stock ranged in a price between $3.78-$3.82 after having opened the day at $3.78 as compared to the previous trading day's close of $3.61. RLJ Entertainment, Inc., an entertainment company, acquires content rights in British episodic mystery and drama, urban programming, and full-length motion pictures. It operates through three segments: Intellectual Property Licensing, Wholesale, and Direct-to-Consumer. RLJ Entertainment has a market cap of $48.3 million and is part of the leisure industry. Shares are down 24.6% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate RLJ Entertainment 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 RLJ Entertainment as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself. Highlights from TheStreet Ratings analysis on RLJE go as follows: