- 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 365.6% when compared to the same quarter one year ago, falling from $0.90 million to -$2.39 million.
- Currently the debt-to-equity ratio of 2.00 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with this, the company manages to maintain a quick ratio of 0.10, which clearly demonstrates the inability to cover short-term cash needs.
- 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 Food Products industry and the overall market, ORIGIN AGRITECH LTD's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for ORIGIN AGRITECH LTD is rather low; currently it is at 22.88%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -15.94% is significantly below that of the industry average.
- The revenue fell significantly faster than the industry average of 3.1%. Since the same quarter one year prior, revenues fell by 28.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
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. Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 25.94 points (-0.2%) at 17,111 as of Monday, Sept. 8, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,156 issues advancing vs. 1,888 declining with 146 unchanged. The Food & Beverage industry as a whole closed the day down 0.1% versus the S&P 500, which was down 0.3%. Top gainers within the Food & Beverage industry included Agria ( GRO), up 11.2%, Leading Brands ( LBIX), up 3.1%, Pingtan Marine Enterprise ( PME), up 3.2%, Origin Agritech ( SEED), up 2.4% and Synutra International ( SYUT), up 5.0%. TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today: Origin Agritech ( SEED) is one of the companies that pushed the Food & Beverage industry higher today. Origin Agritech was up $0.05 (2.4%) to $2.10 on heavy volume. Throughout the day, 184,038 shares of Origin Agritech exchanged hands as compared to its average daily volume of 82,400 shares. The stock ranged in a price between $2.02-$2.18 after having opened the day at $2.02 as compared to the previous trading day's close of $2.05. Origin Agritech Limited, an agricultural biotechnology company, is engaged in crop seed breeding and genetic improvement activities in the People's Republic of China. Origin Agritech has a market cap of $46.4 million and is part of the consumer goods sector. Shares are up 61.4% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Origin Agritech a buy, no analysts rate it a sell, and none 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 Origin Agritech 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 and poor profit margins. Highlights from TheStreet Ratings analysis on SEED go as follows: