- 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.
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 Industrial Goods sector as a whole closed the day down 1.0% versus the S&P 500, which was down 0.1%. Laggards within the Industrial Goods sector included Art's-Way Manufacturing ( ARTW), down 1.6%, Tecumseh Products ( TECUB), down 1.7%, Skyline ( SKY), down 9.8%, TAT Technologies ( TATT), down 2.2% and Guanwei Recycling ( GPRC), down 5.2%. TheStreet Ratings Group would like to highlight 3 stocks that pushed the sector lower today: Polypore International ( PPO) is one of the companies that pushed the Industrial Goods sector 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 industry. 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. 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 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: