- The current debt-to-equity ratio, 0.51, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, ALN has a quick ratio of 1.68, which demonstrates the ability of the company to cover short-term liquidity needs.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- 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 36.9% when compared to the same quarter one year ago, falling from $2.52 million to $1.59 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Food Products industry and the overall market, AMERICAN LORAIN CORP's return on equity is significantly below that of the industry average and is below that of 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 Goods sector as a whole closed the day down 0.3% versus the S&P 500, which was down 0.1%. Laggards within the Consumer Goods sector included China Shengda Packaging Group ( CPGI), down 2.1%, Cobra Electronics ( COBR), down 4.5%, Forward Industries ( FORD), down 5.0%, American Lorain ( ALN), down 1.6% and SGOCO Group ( SGOC), down 6.2%. TheStreet Ratings Group would like to highlight 3 stocks that pushed the sector lower today: American Lorain ( ALN) is one of the companies that pushed the Consumer Goods sector lower today. American Lorain was down $0.02 (1.6%) to $1.22 on light volume. Throughout the day, 25,733 shares of American Lorain exchanged hands as compared to its average daily volume of 38,600 shares. The stock ranged in price between $1.18-$1.24 after having opened the day at $1.24 as compared to the previous trading day's close of $1.24. American Lorain Corporation, through its subsidiaries, develops, manufactures, and sells various food products in the People's Republic of China. It provides chestnut products, including aerated open-bottom chestnuts, sweetheart chestnuts, chestnuts in syrup, and golden chestnut kernels. American Lorain has a market cap of $41.5 million and is part of the automotive industry. Shares are up 57.0% year-to-date as of the close of trading on Thursday. 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 American Lorain 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, attractive valuation levels and good cash flow from operations. 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 ALN go as follows: