3 Stocks Pushing The Transportation Industry Lower

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The Transportation industry as a whole closed the day down 0.9% versus the S&P 500, which was down 0.1%. Laggards within the Transportation industry included China Metro-Rural Holdings ( CNR), down 3.3%, Sino-Global Shipping America ( SINO), down 5.7%, Globus Maritime ( GLBS), down 4.5%, PHI ( PHII), down 18.8% and Patriot Transportation Holdings ( PATR), down 2.1%.

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

Globus Maritime ( GLBS) is one of the companies that pushed the Transportation industry lower today. Globus Maritime was down $0.15 (4.5%) to $3.21 on light volume. Throughout the day, 1,265 shares of Globus Maritime exchanged hands as compared to its average daily volume of 12,500 shares. The stock ranged in price between $3.20-$3.29 after having opened the day at $3.26 as compared to the previous trading day's close of $3.36.

Globus Maritime Limited, an integrated dry bulk shipping company, provides marine transportation services worldwide. It owns, operates, and manages a fleet of dry bulk vessels that transport iron ore, coal, grain, steel products, cement, alumina, and other dry bulk cargoes. Globus Maritime has a market cap of $33.8 million and is part of the services sector. Shares are down 15.2% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Globus Maritime a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Globus Maritime as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and weak operating cash flow.

Highlights from TheStreet Ratings analysis on GLBS 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 Marine industry average. The net income has decreased by 18.0% when compared to the same quarter one year ago, dropping from $1.32 million to $1.08 million.
  • Net operating cash flow has decreased to $2.81 million or 16.15% when compared to the same quarter last year. Despite a decrease in cash flow of 16.15%, GLOBUS MARITIME LTD is in line with the industry average cash flow growth rate of -19.22%.
  • 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. When compared to other companies in the Marine industry and the overall market, GLOBUS MARITIME LTD's return on equity is below that of both the industry average and the S&P 500.
  • The gross profit margin for GLOBUS MARITIME LTD is rather high; currently it is at 50.14%. Regardless of GLBS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GLBS's net profit margin of 14.60% compares favorably to the industry average.
  • GLBS's share price has surged by 26.08% over the past year, reflecting the market's general trend, despite their weak earnings growth during the last quarter. Regarding the future course of this stock, we feel that the risks involved in investing in GLBS do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

You can view the full analysis from the report here: Globus Maritime Ratings Report

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