- MAGS's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, MAGS has a quick ratio of 2.35, which demonstrates the ability of the company to cover short-term liquidity needs.
- MAGS, with its decline in revenue, underperformed when compared the industry average of 9.2%. Since the same quarter one year prior, revenues slightly dropped by 7.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- In its most recent trading session, MAGS has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- 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 Electronic Equipment, Instruments & Components industry and the overall market, MAGAL SECURITY SYSTEMS's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for MAGAL SECURITY SYSTEMS is currently lower than what is desirable, coming in at 32.68%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -15.78% is significantly below that of 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 Diversified Services industry as a whole closed the day up 0.4% versus the S&P 500, which was unchanged. Laggards within the Diversified Services industry included Bioanalytical Systems ( BASI), down 3.2%, PDI ( PDII), down 1.6%, Magal Security Systems ( MAGS), down 4.7%, China HGS Real Estate ( HGSH), down 10.5% and Hudson Global ( HSON), down 1.9%. TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today: Magal Security Systems ( MAGS) is one of the companies that pushed the Diversified Services industry lower today. Magal Security Systems was down $0.18 (4.7%) to $3.67 on light volume. Throughout the day, 1,800 shares of Magal Security Systems exchanged hands as compared to its average daily volume of 11,200 shares. The stock ranged in price between $3.62-$3.80 after having opened the day at $3.80 as compared to the previous trading day's close of $3.85. Magal Security Systems Ltd. develops, manufactures, and sells safety, security, site management, and intelligence gathering and compilation solutions and products worldwide. It operates through: Perimeter Products, Turnkey Projects, and Cyber segments. Magal Security Systems has a market cap of $58.6 million and is part of the services sector. Shares are up 8.1% 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 Magal Security Systems as a hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity. Highlights from TheStreet Ratings analysis on MAGS go as follows: