- 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.
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 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. 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 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: