- The share price of ERICKSON INC has not done very well: it is down 17.07% 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. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
- 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 Aerospace & Defense industry. The net income has significantly decreased by 524.5% when compared to the same quarter one year ago, falling from -$1.22 million to -$7.59 million.
- The debt-to-equity ratio is very high at 2.45 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, EAC maintains a poor quick ratio of 0.84, 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 Aerospace & Defense industry and the overall market, ERICKSON INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for ERICKSON INC is rather low; currently it is at 21.88%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -10.23% is significantly below that of 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 Aerospace/Defense industry as a whole closed the day down 1.0% versus the S&P 500, which was down 0.2%. Laggards within the Aerospace/Defense industry included Micronet Enertec Technologies ( MICT), down 4.4%, TAT Technologies ( TATT), down 1.7%, CAE ( CAE), down 1.8%, LMI Aerospace ( LMIA), down 2.0% and Erickson ( EAC), down 1.8%. TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today: Erickson ( EAC) is one of the companies that pushed the Aerospace/Defense industry lower today. Erickson was down $0.24 (1.8%) to $13.35 on light volume. Throughout the day, 30,503 shares of Erickson exchanged hands as compared to its average daily volume of 46,000 shares. The stock ranged in price between $13.16-$13.54 after having opened the day at $13.47 as compared to the previous trading day's close of $13.59. Erickson Incorporated provides aviation services to commercial and government customers. As of December 31, 2013, the company operated a fleet of 90 rotary-wing and fixed wing aircrafts, including a fleet of 20 heavy-lift Erickson S-64 aircranes. Erickson has a market cap of $174.4 million and is part of the industrial goods sector. Shares are down 34.6% year-to-date as of the close of trading on Monday. Currently there are 2 analysts who rate Erickson a buy, no analysts rate it a sell, and 5 rate 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 Erickson 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, poor profit margins and generally disappointing historical performance in the stock itself. Highlights from TheStreet Ratings analysis on EAC go as follows: