- 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 Electronic Equipment, Instruments & Components industry and the overall market, LGL GROUP INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for LGL GROUP INC is currently lower than what is desirable, coming in at 27.40%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -21.69% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to -$0.04 million or 108.23% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- LGL'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 27.36%, 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.
- LGL GROUP INC reported significant earnings per share improvement 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, LGL GROUP INC reported poor results of -$3.16 versus -$0.51 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 Technology sector as a whole was unchanged today versus the S&P 500, which was down 0.3%. Laggards within the Technology sector included Qualstar ( QBAK), down 6.9%, Sajan ( SAJA), down 5.2%, GRAVITY ( GRVY), down 2.4%, LGL Group ( LGL), down 1.8% and Wells-Gardner Electronic ( WGA), down 1.7%. TheStreet Ratings Group would like to highlight 3 stocks that pushed the sector lower today: LGL Group ( LGL) is one of the companies that pushed the Technology sector lower today. LGL Group was down $0.07 (1.8%) to $3.85 on light volume. Throughout the day, 700 shares of LGL Group exchanged hands as compared to its average daily volume of 4,400 shares. The stock ranged in price between $3.85-$3.90 after having opened the day at $3.87 as compared to the previous trading day's close of $3.92. The LGL Group, Inc., through its subsidiaries, designs, manufactures, and markets standard and custom-engineered electronic components in the United States and internationally. LGL Group has a market cap of $11.6 million and is part of the telecommunications industry. Shares are down 27.5% year-to-date as of the close of trading on Friday. 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 LGL Group as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself. Highlights from TheStreet Ratings analysis on LGL go as follows: