3 Stocks Pushing The Industrial Industry Lower

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The Industrial industry as a whole closed the day down 1.2% versus the S&P 500, which was down 0.1%. Laggards within the Industrial industry included Art's-Way Manufacturing ( ARTW), down 1.6%, Tecumseh Products ( TECUB), down 1.7%, Compx International ( CIX), down 4.6%, American DG Energy ( ADGE), down 6.3% and Cleantech Solutions International ( CLNT), down 5.5%.

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

Polypore International ( PPO) is one of the companies that pushed the Industrial industry lower today. Polypore International was down $1.78 (4.1%) to $41.92 on heavy volume. Throughout the day, 567,752 shares of Polypore International exchanged hands as compared to its average daily volume of 325,600 shares. The stock ranged in price between $41.77-$43.81 after having opened the day at $43.78 as compared to the previous trading day's close of $43.70.

Polypore International, Inc. develops, manufactures, and markets specialized microporous membranes for the use in separation and filtration processes. Polypore International has a market cap of $2.0 billion and is part of the industrial goods sector. Shares are up 12.3% year-to-date as of the close of trading on Friday. Currently there are 4 analysts who rate Polypore International a buy, no analysts rate it a sell, and 5 rate it a hold.

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TheStreet Ratings rates Polypore 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 and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on PPO go as follows:

  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 6.5%. Since the same quarter one year prior, revenues slightly dropped by 1.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • PPO's debt-to-equity ratio of 0.84 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. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.33 is sturdy.
  • 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 Electrical Equipment industry. The net income has significantly decreased by 131.6% when compared to the same quarter one year ago, falling from $15.44 million to -$4.89 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Electrical Equipment industry and the overall market, POLYPORE INTERNATIONAL INC's return on equity significantly trails that of both the industry average and the S&P 500.

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

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At the close, Compx International ( CIX) was down $0.52 (4.6%) to $10.75 on heavy volume. Throughout the day, 26,113 shares of Compx International exchanged hands as compared to its average daily volume of 7,800 shares. The stock ranged in price between $10.65-$11.45 after having opened the day at $11.29 as compared to the previous trading day's close of $11.27.

CompX International Inc. manufactures and sells security products and recreational marine components primarily in North America. The company operates through two segments, Security Products and Marine Components. Compx International has a market cap of $27.1 million and is part of the industrial goods sector. Shares are down 20.0% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates Compx International a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Compx International as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, 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 stock has had a generally disappointing performance in the past year.

Highlights from TheStreet Ratings analysis on CIX go as follows:

  • CIX's revenue growth has slightly outpaced the industry average of 4.1%. Since the same quarter one year prior, revenues rose by 11.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • CIX 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. Along with this, the company maintains a quick ratio of 4.29, which clearly demonstrates the ability to cover short-term cash needs.
  • 35.30% is the gross profit margin for COMPX INTERNATIONAL INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.52% trails the industry average.
  • 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. When compared to other companies in the Commercial Services & Supplies industry and the overall market, COMPX INTERNATIONAL INC's return on equity is below that of both the industry average and the S&P 500.
  • CIX has underperformed the S&P 500 Index, declining 23.38% from its price level of one year ago. 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.

You can view the full analysis from the report here: Compx 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.

Art's-Way Manufacturing ( ARTW) was another company that pushed the Industrial industry lower today. Art's-Way Manufacturing was down $0.08 (1.6%) to $5.04 on light volume. Throughout the day, 4,110 shares of Art's-Way Manufacturing exchanged hands as compared to its average daily volume of 7,200 shares. The stock ranged in price between $5.02-$5.11 after having opened the day at $5.07 as compared to the previous trading day's close of $5.12.

Art's-Way Manufacturing Co., Inc. manufactures and sells agricultural equipment, specialized modular science buildings, pressurized steel vessels, and steel cutting tools in the United States and internationally. Art's-Way Manufacturing has a market cap of $20.6 million and is part of the industrial goods sector. Shares are down 15.9% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates Art's-Way Manufacturing as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

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Highlights from TheStreet Ratings analysis on ARTW go as follows:

  • ARTW's revenue growth has slightly outpaced the industry average of 3.4%. Since the same quarter one year prior, revenues slightly increased by 2.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 53.67% to -$0.62 million when compared to the same quarter last year. In addition, ARTS WAY MFG INC has also vastly surpassed the industry average cash flow growth rate of -24.04%.
  • The debt-to-equity ratio is somewhat low, currently at 0.65, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.43 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • ARTS WAY MFG INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, ARTS WAY MFG INC reported lower earnings of $0.38 versus $0.66 in the prior year.
  • 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 Machinery industry. The net income has significantly decreased by 50.9% when compared to the same quarter one year ago, falling from $0.52 million to $0.25 million.

You can view the full analysis from the report here: Art's-Way Manufacturing 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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