- 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 Food Products industry. The net income has significantly decreased by 577.9% when compared to the same quarter one year ago, falling from -$15.58 million to -$105.63 million.
- The debt-to-equity ratio is very high at 2.26 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, DMND has a quick ratio of 0.55, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- 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 Food Products industry and the overall market, DIAMOND FOODS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for DIAMOND FOODS INC is currently lower than what is desirable, coming in at 27.74%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -55.33% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to -$163.68 million or 931.91% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
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 Food & Beverage industry as a whole closed the day down 0.1% versus the S&P 500, which was down 0.1%. Laggards within the Food & Beverage industry included Leading Brands ( LBIX), down 1.9%, Crystal Rock Holdings ( CRVP), down 2.2%, American Lorain ( ALN), down 1.8%, RiceBran Technologies ( RIBT), down 3.6% and Brown-Forman ( BF.A), down 1.7%. TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today: Diamond Foods ( DMND) is one of the companies that pushed the Food & Beverage industry lower today. Diamond Foods was down $0.48 (1.7%) to $28.32 on average volume. Throughout the day, 300,919 shares of Diamond Foods exchanged hands as compared to its average daily volume of 387,900 shares. The stock ranged in price between $28.01-$29.41 after having opened the day at $29.40 as compared to the previous trading day's close of $28.80. Diamond Foods, Inc., a packaged food company, processes, markets, and distributes snack products and nuts. The company's Snacks segment offers microwave popcorn products and potato chips under the Kettle and Pop Secret brands. Diamond Foods has a market cap of $909.2 million and is part of the consumer goods sector. Shares are up 11.5% year-to-date as of the close of trading on Friday. Currently there are 3 analysts who rate Diamond Foods a buy, no analysts rate it a sell, and 1 rates 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 Diamond Foods as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and weak operating cash flow. Highlights from TheStreet Ratings analysis on DMND go as follows: