3 Stocks Pushing The Consumer Durables Industry Lower

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 Consumer Durables industry as a whole closed the day down 0.6% versus the S&P 500, which was down 0.7%. Laggards within the Consumer Durables industry included Entertainment Gaming Asia ( EGT), down 15.2%, Koss ( KOSS), down 3.3%, Gaming Partners International ( GPIC), down 3.2%, Marine Products ( MPX), down 7.0% and Johnson Outdoors ( JOUT), down 4.3%.

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

Marine Products ( MPX) is one of the companies that pushed the Consumer Durables industry lower today. Marine Products was down $0.58 (7.0%) to $7.65 on average volume. Throughout the day, 21,375 shares of Marine Products exchanged hands as compared to its average daily volume of 15,300 shares. The stock ranged in price between $7.64-$8.11 after having opened the day at $8.02 as compared to the previous trading day's close of $8.23.

Marine Products Corporation designs, manufactures, and sells recreational fiberglass powerboats in the sportboat, deckboat, cruiser, sport yacht, and sport fishing markets worldwide. Marine Products has a market cap of $311.8 million and is part of the consumer goods sector. Shares are down 18.1% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Marine Products a buy, no analysts rate it a sell, and 2 rate it a hold.

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TheStreet Ratings rates Marine Products as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, impressive record of earnings per share growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from TheStreet Ratings analysis on MPX go as follows:

  • MPX's revenue growth has slightly outpaced the industry average of 6.4%. Since the same quarter one year prior, revenues rose by 13.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Leisure Equipment & Products industry. The net income increased by 55.7% when compared to the same quarter one year prior, rising from $1.94 million to $3.01 million.
  • MARINE PRODUCTS CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past two years indicate the company has sound management over its earnings and share float. We anticipate the company beginning to experience more growth in the coming year. During the past fiscal year, MARINE PRODUCTS CORP's EPS of $0.19 remained unchanged from the prior years' EPS of $0.19. This year, the market expects an improvement in earnings ($0.28 versus $0.19).
  • Net operating cash flow has significantly increased by 68.14% to -$0.38 million when compared to the same quarter last year. Despite an increase in cash flow of 68.14%, MARINE PRODUCTS CORP is still growing at a significantly lower rate than the industry average of 161.90%.
  • MPX has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.97 is somewhat weak and could be cause for future problems.

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

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At the close, Gaming Partners International ( GPIC) was down $0.28 (3.2%) to $8.20 on average volume. Throughout the day, 5,254 shares of Gaming Partners International exchanged hands as compared to its average daily volume of 5,000 shares. The stock ranged in price between $8.20-$8.50 after having opened the day at $8.50 as compared to the previous trading day's close of $8.48.

Gaming Partners International Corporation, together with its subsidiaries, manufactures and supplies casino table game equipment to licensed casinos worldwide. Gaming Partners International has a market cap of $67.2 million and is part of the consumer goods sector. Shares are up 3.9% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates Gaming Partners International as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on GPIC go as follows:

  • GPIC's debt-to-equity ratio is very low at 0.22 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, GPIC has a quick ratio of 2.05, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has significantly increased by 131.33% to $1.08 million when compared to the same quarter last year. In addition, GAMING PARTNERS INTL CORP has also vastly surpassed the industry average cash flow growth rate of -5.13%.
  • GPIC, with its decline in revenue, underperformed when compared the industry average of 5.6%. Since the same quarter one year prior, revenues fell by 27.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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 Hotels, Restaurants & Leisure industry and the overall market, GAMING PARTNERS INTL CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for GAMING PARTNERS INTL CORP is currently lower than what is desirable, coming in at 32.58%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -11.29% is significantly below that of the industry average.

You can view the full analysis from the report here: Gaming Partners International 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.

Entertainment Gaming Asia ( EGT) was another company that pushed the Consumer Durables industry lower today. Entertainment Gaming Asia was down $0.07 (15.2%) to $0.40 on heavy volume. Throughout the day, 153,166 shares of Entertainment Gaming Asia exchanged hands as compared to its average daily volume of 16,700 shares. The stock ranged in price between $0.40-$0.48 after having opened the day at $0.48 as compared to the previous trading day's close of $0.47.

Entertainment Gaming Asia Inc., a gaming company, owns and leases electronic gaming machines (EGMs) in resorts, hotels, and other venues in Cambodia and the Philippines. It operates in two segments, Gaming Operations and Gaming Products. Entertainment Gaming Asia has a market cap of $15.0 million and is part of the consumer goods sector. Shares are down 59.7% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates Entertainment Gaming Asia as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and weak operating cash flow.

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Highlights from TheStreet Ratings analysis on EGT go as follows:

  • 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 Hotels, Restaurants & Leisure industry and the overall market, ENTERTAINMENT GAMING ASIA's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $1.82 million or 17.06% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • This stock's share value has moved by only 64.29% over the past year. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • ENTERTAINMENT GAMING ASIA has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, ENTERTAINMENT GAMING ASIA swung to a loss, reporting -$0.15 versus $0.07 in the prior year.
  • The gross profit margin for ENTERTAINMENT GAMING ASIA is rather high; currently it is at 67.48%. Regardless of EGT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, EGT's net profit margin of -0.44% significantly underperformed when compared to the industry average.

You can view the full analysis from the report here: Entertainment Gaming Asia 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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