- 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 Aerospace & Defense industry. The net income has significantly decreased by 258.9% when compared to the same quarter one year ago, falling from $4.66 million to -$7.41 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. Compared to other companies in the Aerospace & Defense industry and the overall market, LMI AEROSPACE INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for LMI AEROSPACE INC is rather low; currently it is at 23.21%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -6.99% is significantly below that of the industry average.
- The debt-to-equity ratio is very high at 2.10 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Regardless of the company's weak debt-to-equity ratio, LMIA has managed to keep a strong quick ratio of 1.79, which demonstrates the ability to cover short-term cash needs.
- In its most recent trading session, LMIA has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. 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.
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 Aerospace/Defense industry as a whole closed the day down 0.7% versus the S&P 500, which was down 0.3%. Laggards within the Aerospace/Defense industry included Micronet Enertec Technologies ( MICT), down 4.2%, CPI Aerostructures ( CVU), down 3.7%, Astrotech ( ASTC), down 4.1%, Acorn Energy ( ACFN), down 3.7% and LMI Aerospace ( LMIA), down 2.2%. TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today: LMI Aerospace ( LMIA) is one of the companies that pushed the Aerospace/Defense industry lower today. LMI Aerospace was down $0.29 (2.2%) to $12.80 on average volume. Throughout the day, 48,795 shares of LMI Aerospace exchanged hands as compared to its average daily volume of 39,700 shares. The stock ranged in price between $12.73-$13.12 after having opened the day at $13.04 as compared to the previous trading day's close of $13.09. LMI Aerospace Inc. provides structural assemblies, kits and components, and design engineering services to the aerospace and defense markets in the United States. LMI Aerospace has a market cap of $173.0 million and is part of the industrial goods sector. Shares are down 10.0% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate LMI Aerospace a buy, no analysts rate it a sell, and 3 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 LMI Aerospace as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, generally high debt management risk and generally disappointing historical performance in the stock itself. Highlights from TheStreet Ratings analysis on LMIA go as follows: