- FREE's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 87.31%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- FREE's debt-to-equity ratio of 0.62 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. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.11 is very low and demonstrates very weak liquidity.
- The revenue fell significantly faster than the industry average of 10.2%. Since the same quarter one year prior, revenues fell by 45.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- Compared to other companies in the Marine industry and the overall market, FREESEAS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- FREESEAS INC reported significant earnings per share improvement 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 two years. During the past fiscal year, FREESEAS INC continued to lose money by earning -$29.37 versus -$220.50 in the prior year.
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 Transportation industry as a whole closed the day down 1.5% versus the S&P 500, which was down 1.6%. Laggards within the Transportation industry included Rand Logistics ( RLOG), down 2.6%, Patriot Transportation Holdings ( PATR), down 2.0%, FreeSeas ( FREE), down 7.5%, Diana Containerships ( DCIX), down 3.8% and ModusLink Global Solutions ( MLNK), down 1.6%. TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today: FreeSeas ( FREE) is one of the companies that pushed the Transportation industry lower today. FreeSeas was down $0.02 (7.5%) to $0.23 on heavy volume. Throughout the day, 5,855,199 shares of FreeSeas exchanged hands as compared to its average daily volume of 1,679,100 shares. The stock ranged in price between $0.22-$0.27 after having opened the day at $0.27 as compared to the previous trading day's close of $0.25. FreeSeas Inc., through its subsidiaries, provides drybulk shipping services. Its vessels carry various drybulk commodities, such as iron ore, grain, and coal, as well as bauxite, phosphate, fertilizers, steel products, cement, sugar, and rice. FreeSeas has a market cap of $8.6 million and is part of the services sector. Shares are down 89.9% year-to-date as of the close of trading on Wednesday. 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 FreeSeas as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and generally high debt management risk. Highlights from TheStreet Ratings analysis on FREE go as follows: