- BTN 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. To add to this, BTN has a quick ratio of 2.45, which demonstrates the ability of the company to cover short-term liquidity needs.
- The revenue fell significantly faster than the industry average of 14.6%. Since the same quarter one year prior, revenues fell by 20.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- In its most recent trading session, BTN 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. 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.
- 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 Media industry. The net income has significantly decreased by 205.1% when compared to the same quarter one year ago, falling from $0.57 million to -$0.59 million.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Media industry and the overall market, BALLANTYNE STRONG INC's return on equity significantly trails that of both the industry average and the S&P 500.
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 Consumer Durables industry as a whole closed the day down 1.0% versus the S&P 500, which was down 0.7%. Laggards within the Consumer Durables industry included Cobra Electronics ( COBR), down 2.8%, Emerson Radio ( MSN), down 2.9%, Stanley Furniture ( STLY), down 1.8%, Ballantyne Strong ( BTN), down 2.6% and Marine Products ( MPX), down 3.6%. TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today: Ballantyne Strong ( BTN) is one of the companies that pushed the Consumer Durables industry lower today. Ballantyne Strong was down $0.11 (2.6%) to $4.00 on average volume. Throughout the day, 29,596 shares of Ballantyne Strong exchanged hands as compared to its average daily volume of 39,000 shares. The stock ranged in price between $4.00-$4.14 after having opened the day at $4.14 as compared to the previous trading day's close of $4.11. Ballantyne Strong, Inc. designs, integrates, and installs technology solutions for retail, financial, government, and cinema markets worldwide. The company operates in two segments, Systems Integration and Managed Services. Ballantyne Strong has a market cap of $60.1 million and is part of the consumer goods sector. Shares are down 8.2% year-to-date as of the close of trading on Monday. 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 Ballantyne Strong 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 BTN go as follows: