3 Stocks Pushing The Health Services Industry Lower

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The Health Services industry as a whole closed the day down 1.1% versus the S&P 500, which was down 0.6%. Laggards within the Health Services industry included Allied Healthcare Products ( AHPI), down 1.5%, Vision-Sciences ( VSCI), down 3.3%, Pro-Dex ( PDEX), down 1.8%, Neovasc ( NVCN), down 4.6% and Diversicare Healthcare Services ( DVCR), down 2.6%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Diversicare Healthcare Services ( DVCR) is one of the companies that pushed the Health Services industry lower today. Diversicare Healthcare Services was down $0.17 (2.6%) to $6.61 on light volume. Throughout the day, 200 shares of Diversicare Healthcare Services exchanged hands as compared to its average daily volume of 11,400 shares. The stock ranged in price between $6.61-$6.61 after having opened the day at $6.61 as compared to the previous trading day's close of $6.78.

Diversicare Healthcare Services, Inc., together with its subsidiaries, provides long-term care services to nursing center patients primarily in the Southwest, Southeast, and Midwest United States. Diversicare Healthcare Services has a market cap of $40.8 million and is part of the health care sector. Shares are up 42.7% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates Diversicare Healthcare Services 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, weak operating cash flow and poor profit margins.

Highlights from TheStreet Ratings analysis on DVCR go as follows:

  • 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 the Health Care Providers & Services industry average. The net income has decreased by 5.7% when compared to the same quarter one year ago, dropping from -$0.97 million to -$1.02 million.
  • The debt-to-equity ratio is very high at 5.14 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, DVCR maintains a poor quick ratio of 0.85, which illustrates the inability to avoid short-term cash problems.
  • 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 Health Care Providers & Services industry and the overall market, DIVERSICARE HEALTHCARE SVCS's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$4.57 million or 211.74% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for DIVERSICARE HEALTHCARE SVCS is currently extremely low, coming in at 12.35%. Regardless of DVCR's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -1.22% trails the industry average.

You can view the full analysis from the report here: Diversicare Healthcare Services Ratings Report

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At the close, Vision-Sciences ( VSCI) was down $0.03 (3.3%) to $0.94 on heavy volume. Throughout the day, 73,673 shares of Vision-Sciences exchanged hands as compared to its average daily volume of 25,500 shares. The stock ranged in price between $0.94-$0.96 after having opened the day at $0.95 as compared to the previous trading day's close of $0.97.

Vision-Sciences, Inc., through its subsidiaries, designs, develops, manufactures, and markets endoscopy products. It operates through Medical and Industrial segments. Vision-Sciences has a market cap of $47.1 million and is part of the health care sector. Shares are down 3.0% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates Vision-Sciences as a sell. The area that we feel has been the company's primary weakness has been its relatively poor performance when compared with the S&P 500 during the past year.

Highlights from TheStreet Ratings analysis on VSCI go as follows:

  • In its most recent trading session, VSCI 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. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
  • 35.05% is the gross profit margin for VISION-SCIENCES INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -52.69% is in-line with the industry average.
  • Net operating cash flow has increased to -$0.95 million or 33.40% when compared to the same quarter last year. In addition, VISION-SCIENCES INC has also vastly surpassed the industry average cash flow growth rate of -22.24%.
  • VISION-SCIENCES INC has improved earnings per share by 20.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, VISION-SCIENCES INC continued to lose money by earning -$0.16 versus -$0.22 in the prior year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Health Care Equipment & Supplies industry average. The net income increased by 18.8% when compared to the same quarter one year prior, going from -$2.43 million to -$1.98 million.

You can view the full analysis from the report here: Vision-Sciences Ratings Report

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Allied Healthcare Products ( AHPI) was another company that pushed the Health Services industry lower today. Allied Healthcare Products was down $0.03 (1.5%) to $1.96 on average volume. Throughout the day, 10,997 shares of Allied Healthcare Products exchanged hands as compared to its average daily volume of 8,700 shares. The stock ranged in price between $1.96-$2.04 after having opened the day at $1.96 as compared to the previous trading day's close of $1.99.

Allied Healthcare Products, Inc. manufactures, markets, and distributes respiratory care products, medical gas equipment, and emergency medical products in Canada, Mexico, Central and South America, Europe, the Middle East, and the Far East. Allied Healthcare Products has a market cap of $15.8 million and is part of the health care sector. Shares are down 13.6% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates Allied Healthcare Products as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on AHPI go as follows:

  • ALLIED HEALTHCARE PRODS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, ALLIED HEALTHCARE PRODS INC reported poor results of -$0.15 versus -$0.06 in the prior year.
  • 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 Health Care Equipment & Supplies industry. The net income has significantly decreased by 247.3% when compared to the same quarter one year ago, falling from -$0.28 million to -$0.97 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 Health Care Equipment & Supplies industry and the overall market, ALLIED HEALTHCARE PRODS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for ALLIED HEALTHCARE PRODS INC is rather low; currently it is at 22.80%. Regardless of AHPI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, AHPI's net profit margin of -10.63% significantly underperformed when compared to the industry average.
  • The share price of ALLIED HEALTHCARE PRODS INC has not done very well: it is down 15.79% 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.

You can view the full analysis from the report here: Allied Healthcare Products Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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