3 Stocks Pushing The Chemicals Industry Lower

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The Chemicals industry as a whole closed the day up 0.2% versus the S&P 500, which was up 0.1%. Laggards within the Chemicals industry included Ikonics ( IKNX), down 3.4%, Lightbridge ( LTBR), down 1.6%, Gulf Resources ( GURE), down 1.5%, Synthesis Energy Sys ( SYMX), down 13.9% and BioAmber ( BIOA), down 4.2%.

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

BioAmber ( BIOA) is one of the companies that pushed the Chemicals industry lower today. BioAmber was down $0.51 (4.2%) to $11.76 on light volume. Throughout the day, 53,945 shares of BioAmber exchanged hands as compared to its average daily volume of 85,600 shares. The stock ranged in price between $11.75-$12.40 after having opened the day at $12.22 as compared to the previous trading day's close of $12.27.

BioAmber Inc., an industrial biotechnology company, produces and sells bio-succinic acid to customers in various chemical markets in the United States. BioAmber has a market cap of $256.4 million and is part of the conglomerates sector. Shares are up 64.0% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates BioAmber a buy, no analysts rate it a sell, and none rate it a hold.

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

Highlights from TheStreet Ratings analysis on BIOA go as follows:

  • 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 Chemicals industry. The net income has significantly decreased by 98.3% when compared to the same quarter one year ago, falling from -$7.06 million to -$13.99 million.
  • 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 Chemicals industry and the overall market, BIOAMBER INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to -$3.08 million or 42.11% 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.
  • BIOA, with its very weak revenue results, has greatly underperformed against the industry average of 7.8%. Since the same quarter one year prior, revenues plummeted by 59.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • BIOA's debt-to-equity ratio of 0.90 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that BIOA's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.80 is high and demonstrates strong liquidity.

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

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At the close, Synthesis Energy Sys ( SYMX) was down $0.20 (13.9%) to $1.24 on heavy volume. Throughout the day, 1,658,170 shares of Synthesis Energy Sys exchanged hands as compared to its average daily volume of 406,500 shares. The stock ranged in price between $1.10-$1.28 after having opened the day at $1.15 as compared to the previous trading day's close of $1.44.

Synthesis Energy Systems, Inc., a development stage energy and gasification technology company, provides various proprietary gasification technology systems and solutions to the energy and chemical industries worldwide. Synthesis Energy Sys has a market cap of $80.1 million and is part of the conglomerates sector. Shares are up 140.0% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates Synthesis Energy Sys as a sell. The area that we feel has been the company's primary weakness has been its disappointing return on equity.

Highlights from TheStreet Ratings analysis on SYMX go as follows:

  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Energy Equipment & Services industry and the overall market, SYNTHESIS ENERGY SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • SYNTHESIS ENERGY SYSTEMS INC has improved earnings per share by 33.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, SYNTHESIS ENERGY SYSTEMS INC continued to lose money by earning -$0.34 versus -$0.40 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Energy Equipment & Services industry. The net income increased by 22.8% when compared to the same quarter one year prior, going from -$5.38 million to -$4.15 million.
  • This stock has increased by 38.65% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in SYMX do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
  • SYMX's debt-to-equity ratio is very low at 0.04 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, SYMX has a quick ratio of 2.12, which demonstrates the ability of the company to cover short-term liquidity needs.

You can view the full analysis from the report here: Synthesis Energy Sys Ratings Report

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Gulf Resources ( GURE) was another company that pushed the Chemicals industry lower today. Gulf Resources was down $0.03 (1.5%) to $1.94 on light volume. Throughout the day, 46,883 shares of Gulf Resources exchanged hands as compared to its average daily volume of 101,100 shares. The stock ranged in price between $1.93-$1.96 after having opened the day at $1.96 as compared to the previous trading day's close of $1.97.

Gulf Resources, Inc., together with its subsidiaries, manufactures and trades in bromine and crude salt products in the People's Republic of China. It operates in three segments: Bromine, Crude Salt, and Chemical Products. Gulf Resources has a market cap of $77.1 million and is part of the conglomerates sector. Shares are down 16.2% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates Gulf Resources as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we find that the company's revenue growth has not been good.

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Highlights from TheStreet Ratings analysis on GURE go as follows:

  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Chemicals industry average. The net income increased by 5.8% when compared to the same quarter one year prior, going from $5.36 million to $5.67 million.
  • GURE's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 15.16, which clearly demonstrates the ability to cover short-term cash needs.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • GURE, with its decline in revenue, underperformed when compared the industry average of 7.8%. Since the same quarter one year prior, revenues slightly dropped by 3.3%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Chemicals industry and the overall market, GULF RESOURCES INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

You can view the full analysis from the report here: Gulf Resources Ratings Report

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