- Compared to other companies in the Electrical Equipment industry and the overall market, MAGNETEK INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- MAG has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, MAG has a quick ratio of 2.29, which demonstrates the ability of the company to cover short-term liquidity needs.
- MAGNETEK INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. 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, MAGNETEK INC reported lower earnings of $1.12 versus $2.14 in the prior year. This year, the market expects an improvement in earnings ($1.39 versus $1.12).
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 6.2%. Since the same quarter one year prior, revenues slightly dropped by 3.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The gross profit margin for MAGNETEK INC is currently lower than what is desirable, coming in at 34.65%. Regardless of MAG'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 4.37% trails the industry average.
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 industry as a whole closed the day up 0.8% versus the S&P 500, which was unchanged. Laggards within the Industrial industry included Lime Energy ( LIME), down 2.6%, Compx International ( CIX), down 1.7%, Magnetek ( MAG), down 1.6%, Metalico ( MEA), down 1.7% and LSI Industries ( LYTS), down 1.9%. TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today: Magnetek ( MAG) is one of the companies that pushed the Industrial industry lower today. Magnetek was down $0.36 (1.6%) to $21.88 on light volume. Throughout the day, 4,126 shares of Magnetek exchanged hands as compared to its average daily volume of 7,600 shares. The stock ranged in price between $21.82-$22.15 after having opened the day at $22.05 as compared to the previous trading day's close of $22.24. Magnetek, Inc. provides digital power control systems to control motion and power primarily in material handling, elevator, and mining applications. Magnetek has a market cap of $72.2 million and is part of the industrial goods sector. Shares are down 7.2% year-to-date as of the close of trading on Friday. 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 Magnetek as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the company's profit margins have been poor overall. Highlights from TheStreet Ratings analysis on MAG go as follows: