3 Stocks Pushing The Consumer Non-Durables Industry Lower

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The Consumer Non-Durables industry as a whole closed the day down 0.4% versus the S&P 500, which was up 0.1%. Laggards within the Consumer Non-Durables industry included CTI Industries ( CTIB), down 4.2%, Ocean Bio-Chem ( OBCI), down 2.0%, China Xiniya Fashion ( XNY), down 1.6%, United-Guardian ( UG), down 4.1% and Crown Crafts ( CRWS), down 2.0%.

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

United-Guardian ( UG) is one of the companies that pushed the Consumer Non-Durables industry lower today. United-Guardian was down $1.00 (4.1%) to $23.28 on average volume. Throughout the day, 6,347 shares of United-Guardian exchanged hands as compared to its average daily volume of 6,400 shares. The stock ranged in price between $23.00-$24.94 after having opened the day at $24.08 as compared to the previous trading day's close of $24.28.

United-Guardian, Inc. researches, develops, manufactures, and markets cosmetic ingredients, personal care products, pharmaceuticals, medical and health care products, and specialty industrial products in the United States, Canada, China, France, and internationally. United-Guardian has a market cap of $111.6 million and is part of the consumer goods sector. Shares are down 13.8% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates United-Guardian as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from TheStreet Ratings analysis on UG go as follows:

  • UG 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 10.25, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for UNITED-GUARDIAN INC is rather high; currently it is at 64.48%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 30.22% significantly outperformed against the industry average.
  • Net operating cash flow has slightly increased to $1.59 million or 2.77% when compared to the same quarter last year. Despite an increase in cash flow, UNITED-GUARDIAN INC's average is still marginally south of the industry average growth rate of 10.35%.
  • UNITED-GUARDIAN INC's earnings per share declined by 31.0% in the most recent quarter compared to the same quarter a year ago. 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, UNITED-GUARDIAN INC increased its bottom line by earning $1.28 versus $1.05 in the prior year.
  • UG, with its decline in revenue, underperformed when compared the industry average of 8.7%. Since the same quarter one year prior, revenues fell by 17.9%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

You can view the full analysis from the report here: United-Guardian Ratings Report

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At the close, China Xiniya Fashion ( XNY) was down $0.01 (1.6%) to $0.63 on light volume. Throughout the day, 10,705 shares of China Xiniya Fashion exchanged hands as compared to its average daily volume of 53,500 shares. The stock ranged in price between $0.62-$0.63 after having opened the day at $0.63 as compared to the previous trading day's close of $0.64.

China Xiniya Fashion Limited designs, manufactures, and sells men's business casual and business formal apparel and accessories to retail customers in the People's Republic of China. China Xiniya Fashion has a market cap of $35.9 million and is part of the consumer goods sector. Shares are down 51.1% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates China Xiniya Fashion 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 also find weaknesses including disappointing return on equity, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on XNY go as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income increased by 41.5% when compared to the same quarter one year prior, rising from $1.53 million to $2.16 million.
  • XNY 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 8.98, which clearly demonstrates the ability to cover short-term cash needs.
  • XNY, with its decline in revenue, underperformed when compared the industry average of 11.9%. Since the same quarter one year prior, revenues fell by 11.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for CHINA XINIYA FASHION LTD-ADR is currently lower than what is desirable, coming in at 27.77%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 6.62% trails that of the industry average.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Textiles, Apparel & Luxury Goods industry and the overall market, CHINA XINIYA FASHION LTD-ADR'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: China Xiniya Fashion Ratings Report

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CTI Industries ( CTIB) was another company that pushed the Consumer Non-Durables industry lower today. CTI Industries was down $0.18 (4.2%) to $4.06 on light volume. Throughout the day, 1,274 shares of CTI Industries exchanged hands as compared to its average daily volume of 3,400 shares. The stock ranged in price between $3.92-$4.23 after having opened the day at $4.23 as compared to the previous trading day's close of $4.24.

CTI Industries Corporation develops, manufactures, and supplies flexible film products for novelty, packaging and container, and custom product applications worldwide. CTI Industries has a market cap of $14.0 million and is part of the consumer goods sector. Shares are down 27.4% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates CTI Industries as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, unimpressive growth in net income, generally high debt management risk, weak operating cash flow and poor profit margins.

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Highlights from TheStreet Ratings analysis on CTIB go as follows:

  • The share price of CTI INDUSTRIES CORP has not done very well: it is down 23.31% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • 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 Household Durables industry. The net income has significantly decreased by 116.1% when compared to the same quarter one year ago, falling from -$0.06 million to -$0.12 million.
  • The debt-to-equity ratio of 1.47 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, CTIB has a quick ratio of 0.55, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has significantly decreased to -$2.01 million or 231.14% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for CTI INDUSTRIES CORP is currently lower than what is desirable, coming in at 27.02%. Regardless of CTIB's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -0.91% trails the industry average.

You can view the full analysis from the report here: CTI Industries 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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