3 Consumer Durables Stocks Pushing Industry Growth

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All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 32 points (0.2%) at 16,953 as of Friday, June 20, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,583 issues advancing vs. 1,400 declining with 164 unchanged.

The Consumer Durables industry as a whole closed the day down 0.7% versus the S&P 500, which was up 0.2%. Top gainers within the Consumer Durables industry included Virco Manufacturing ( VIRC), up 6.0%, Koss ( KOSS), up 2.9%, Cobra Electronics ( COBR), up 8.2%, Gaming Partners International ( GPIC), up 2.3% and Kewaunee Scientific ( KEQU), up 1.8%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

Gaming Partners International ( GPIC) is one of the companies that pushed the Consumer Durables industry higher today. Gaming Partners International was up $0.18 (2.3%) to $8.13 on light volume. Throughout the day, 700 shares of Gaming Partners International exchanged hands as compared to its average daily volume of 4,800 shares. The stock ranged in a price between $8.04-$8.13 after having opened the day at $8.12 as compared to the previous trading day's close of $7.95.

Gaming Partners International Corporation, together with its subsidiaries, manufactures and supplies casino table game equipment to licensed casinos worldwide. Gaming Partners International has a market cap of $63.3 million and is part of the consumer goods sector. Shares are down 2.1% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Gaming Partners International a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Gaming Partners International as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and increase in stock price during the past year. However, as a counter to these strengths, 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 GPIC go as follows:

  • GPIC 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. Along with this, the company maintains a quick ratio of 3.91, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has significantly increased by 155.04% to $0.51 million when compared to the same quarter last year. In addition, GAMING PARTNERS INTL CORP has also vastly surpassed the industry average cash flow growth rate of -3.08%.
  • GPIC, with its decline in revenue, underperformed when compared the industry average of 6.0%. Since the same quarter one year prior, revenues fell by 28.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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 Hotels, Restaurants & Leisure industry and the overall market, GAMING PARTNERS INTL CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for GAMING PARTNERS INTL CORP is currently lower than what is desirable, coming in at 31.77%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -10.71% is significantly below that of the industry average.

You can view the full analysis from the report here: Gaming Partners International Ratings Report

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