- 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 & Staples Retailing industry. The net income has significantly decreased by 858.3% when compared to the same quarter one year ago, falling from $0.40 million to -$3.06 million.
- The gross profit margin for QKL STORES INC is rather low; currently it is at 17.12%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -3.55% trails that of the industry average.
- Net operating cash flow has decreased to $18.00 million or 25.83% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- QKLS's debt-to-equity ratio of 0.88 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.47 is very low and demonstrates very weak liquidity.
- The share price of QKL STORES INC has not done very well: it is down 14.07% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
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 three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 13 points (0.1%) at 16,969 as of Wednesday, July 2, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,178 issues advancing vs. 1,877 declining with 123 unchanged. The Services sector as a whole closed the day down 0.1% versus the S&P 500, which was unchanged. Top gainers within the Services sector included Sport Chalet ( SPCHA), up 2.4%, China Metro-Rural Holdings ( CNR), up 8.0%, Crystal Rock Holdings ( CRVP), up 5.5%, QKL Stores ( QKLS), up 4.2% and Educational Development ( EDUC), up 5.9%. TheStreet Ratings Group would like to highlight 3 stocks pushing the sector higher today: QKL Stores ( QKLS) is one of the companies that pushed the Services sector higher today. QKL Stores was up $0.13 (4.2%) to $3.21 on heavy volume. Throughout the day, 11,939 shares of QKL Stores exchanged hands as compared to its average daily volume of 3,100 shares. The stock ranged in a price between $3.03-$3.46 after having opened the day at $3.03 as compared to the previous trading day's close of $3.08. QKL Stores Inc., through its subsidiaries, engages in the operation of retail chain stores in the People's Republic of China. The company's supermarkets and hypermarkets sell a selection of merchandise, including groceries, fresh food, and non-food items. QKL Stores has a market cap of $4.6 million and is part of the diversified services industry. Shares are down 26.7% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate QKL Stores a buy, no analysts rate it a sell, and none rate 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 QKL Stores as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins, weak operating cash flow, generally high debt management risk and generally disappointing historical performance in the stock itself. Highlights from TheStreet Ratings analysis on QKLS go as follows: