- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Semiconductors & Semiconductor Equipment industry average. The net income has decreased by 10.3% when compared to the same quarter one year ago, dropping from -$4.21 million to -$4.64 million.
- Net operating cash flow has significantly decreased to -$4.91 million or 67.87% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- Looking at the price performance of STRI's shares over the past 12 months, there is not much good news to report: the stock is down 53.10%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, STR HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- STRI, with its decline in revenue, underperformed when compared the industry average of 9.7%. Since the same quarter one year prior, revenues fell by 16.8%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
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. All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 129.91 points (-0.8%) at 16,954 as of Friday, July 25, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 978 issues advancing vs. 1,990 declining with 153 unchanged. The Consumer Goods sector as a whole closed the day down 0.6% versus the S&P 500, which was down 0.6%. Top gainers within the Consumer Goods sector included Ocean Bio-Chem ( OBCI), up 1.6%, Virco Manufacturing ( VIRC), up 2.4%, Emerson Radio ( MSN), up 2.5%, Ballantyne Strong ( BTN), up 3.5% and STR Holdings ( STRI), up 1.6%. TheStreet Ratings Group would like to highlight 3 stocks pushing the sector higher today: STR Holdings ( STRI) is one of the companies that pushed the Consumer Goods sector higher today. STR Holdings was up $0.02 (1.6%) to $1.31 on light volume. Throughout the day, 33,015 shares of STR Holdings exchanged hands as compared to its average daily volume of 116,600 shares. The stock ranged in a price between $1.27-$1.31 after having opened the day at $1.30 as compared to the previous trading day's close of $1.29. STR Holdings, Inc., together with its subsidiaries, designs, develops, manufactures, and sells encapsulants for solar module manufacturers worldwide. Its encapsulants protect the embedded semiconductor circuits of solar panels. STR Holdings has a market cap of $34.3 million and is part of the consumer durables industry. Shares are down 17.8% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate STR Holdings 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 STR Holdings as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow and generally disappointing historical performance in the stock itself. Highlights from TheStreet Ratings analysis on STRI go as follows: