3 Stocks Pushing The Automotive Industry Lower

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The Automotive industry as a whole closed the day down 1.0% versus the S&P 500, which was down 0.6%. Laggards within the Automotive industry included Marine Products ( MPX), down 1.5%, Accuride ( ACW), down 4.5%, Remy International ( REMY), down 3.0%, Spartan Motors ( SPAR), down 2.7% and Fuel Systems Solutions ( FSYS), down 1.6%.

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

Remy International ( REMY) is one of the companies that pushed the Automotive industry lower today. Remy International was down $0.62 (3.0%) to $20.38 on light volume. Throughout the day, 30,669 shares of Remy International exchanged hands as compared to its average daily volume of 44,300 shares. The stock ranged in price between $20.34-$21.16 after having opened the day at $21.00 as compared to the previous trading day's close of $21.00.

Remy International, Inc. designs, manufactures, remanufactures, markets, and distributes rotating electrical components for automobiles, light trucks, heavy-duty trucks, and other vehicles primarily in North America, Europe, Latin America, and the Asia-Pacific. Remy International has a market cap of $687.3 million and is part of the consumer goods sector. Shares are down 9.9% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Remy International a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Remy International as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on REMY go as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.1%. Since the same quarter one year prior, revenues slightly increased by 6.0%. 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.
  • The current debt-to-equity ratio, 0.60, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.96 is somewhat weak and could be cause for future problems.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Auto Components industry average. The net income has decreased by 12.4% when compared to the same quarter one year ago, dropping from $11.37 million to $9.96 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. In comparison to the other companies in the Auto Components industry and the overall market, REMY INTERNATIONAL 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: Remy International Ratings Report

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At the close, Accuride ( ACW) was down $0.20 (4.5%) to $4.25 on light volume. Throughout the day, 131,160 shares of Accuride exchanged hands as compared to its average daily volume of 200,600 shares. The stock ranged in price between $4.18-$4.48 after having opened the day at $4.38 as compared to the previous trading day's close of $4.45.

Accuride Corporation, together with its subsidiaries, designs, manufactures, and distributes commercial vehicle components in North America. Its products include commercial vehicle wheels, wheel-end components and assemblies, and ductile and gray iron castings. Accuride has a market cap of $213.3 million and is part of the consumer goods sector. Shares are up 19.3% year-to-date as of the close of trading on Monday. Currently there are 2 analysts who rate Accuride a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Accuride as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, generally high debt management risk and poor profit margins.

Highlights from TheStreet Ratings analysis on ACW go as follows:

  • ACW has underperformed the S&P 500 Index, declining 14.48% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The debt-to-equity ratio is very high at 5.24 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, ACW's quick ratio is somewhat strong at 1.07, demonstrating the ability to handle short-term liquidity needs.
  • The gross profit margin for ACCURIDE CORP is rather low; currently it is at 16.85%. Regardless of ACW'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 2.91% trails the industry average.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Machinery industry and the overall market, ACCURIDE CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly increased by 154.09% to $18.97 million when compared to the same quarter last year. In addition, ACCURIDE CORP has also vastly surpassed the industry average cash flow growth rate of -24.48%.

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

Marine Products ( MPX) was another company that pushed the Automotive industry lower today. Marine Products was down $0.13 (1.5%) to $8.34 on light volume. Throughout the day, 7,677 shares of Marine Products exchanged hands as compared to its average daily volume of 15,800 shares. The stock ranged in price between $8.34-$8.47 after having opened the day at $8.41 as compared to the previous trading day's close of $8.47.

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 $325.2 million and is part of the consumer goods sector. Shares are down 15.7% 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.

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.

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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 177.27%.
  • 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

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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