NEW YORK (TheStreet) -- Shares of NF Energy Saving Corp. (NFEC) are up 17.04% to $2.10 on Thursday.
The company announced that it signed a $3.38 million contract with an environmental protection company in Beijing for a major retrofit project.
Separately, TheStreet Ratings team rates NF ENERGY SAVING CORP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate NF ENERGY SAVING CORP (NFEC) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. 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 the analysis by TheStreet Ratings Team goes as follows:
- NF ENERGY SAVING CORP's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, NF ENERGY SAVING CORP swung to a loss, reporting -$0.03 versus $0.01 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 Machinery industry. The net income has significantly decreased by 1200.0% when compared to the same quarter one year ago, falling from $0.01 million to -$0.11 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Machinery industry and the overall market, NF ENERGY SAVING CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- 35.28% is the gross profit margin for NF ENERGY SAVING CORP which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, NFEC's net profit margin of -6.28% significantly underperformed when compared to the industry average.
- NFEC's debt-to-equity ratio is very low at 0.27 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.80 is somewhat weak and could be cause for future problems.
- You can view the full analysis from the report here: NFEC Ratings Report