3 Stocks Pushing The Food & Beverage Industry Lower

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 Food & Beverage industry as a whole closed the day down 1.1% versus the S&P 500, which was down 1.5%. Laggards within the Food & Beverage industry included Tofutti Brands ( TOF), down 2.3%, SkyPeople Fruit Juice ( SPU), down 3.0%, Pingtan Marine Enterprise ( PME), down 6.7%, Truett-Hurst ( THST), down 4.0% and Synutra International ( SYUT), down 3.4%.

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

Synutra International ( SYUT) is one of the companies that pushed the Food & Beverage industry lower today. Synutra International was down $0.16 (3.4%) to $4.53 on average volume. Throughout the day, 24,615 shares of Synutra International exchanged hands as compared to its average daily volume of 32,600 shares. The stock ranged in price between $4.50-$4.63 after having opened the day at $4.63 as compared to the previous trading day's close of $4.69.

Synutra International, Inc., through its subsidiaries, produces, markets, and distributes dairy based nutritional products primarily under the Shengyuan or Synutra name in the People's Republic of China. Synutra International has a market cap of $267.0 million and is part of the consumer goods sector. Shares are down 47.2% year-to-date as of the close of trading on Monday.

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 Synutra International as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on SYUT go as follows:

  • SYNUTRA INTERNATIONAL 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, SYNUTRA INTERNATIONAL INC turned its bottom line around by earning $0.54 versus -$1.11 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Personal Products industry. The net income increased by 275.7% when compared to the same quarter one year prior, rising from $4.78 million to $17.94 million.
  • Net operating cash flow has declined marginally to $3.31 million or 0.71% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The debt-to-equity ratio is very high at 4.85 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.47, which clearly demonstrates the inability to cover short-term cash needs.

You can view the full analysis from the report here: Synutra International 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.

At the close, Truett-Hurst ( THST) was down $0.22 (4.0%) to $5.22 on light volume. Throughout the day, 4,205 shares of Truett-Hurst exchanged hands as compared to its average daily volume of 11,500 shares. The stock ranged in price between $5.05-$5.85 after having opened the day at $5.85 as compared to the previous trading day's close of $5.44.

Truett-Hurst, Inc. produces, markets, and sells wines primarily in the United States and Canada. It produces a range of varietals of wine products, including Pinot Noir, Chardonnay, Sauvignon Blanc, Merlot, Cabernet Sauvignon, and Zinfandel. Truett-Hurst has a market cap of $20.3 million and is part of the consumer goods sector. Shares are up 30.5% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Truett-Hurst a buy, no analysts rate it a sell, and 1 rates 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 Truett-Hurst as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, poor profit margins, weak operating cash flow and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on THST go as follows:

  • 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 Beverages industry. The net income has significantly decreased by 202.6% when compared to the same quarter one year ago, falling from -$0.12 million to -$0.35 million.
  • The debt-to-equity ratio of 1.25 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, THST maintains a poor quick ratio of 0.72, which illustrates the inability to avoid short-term cash problems.
  • The gross profit margin for TRUETT-HURST INC is currently lower than what is desirable, coming in at 34.69%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -6.36% is significantly below that of the industry average.
  • Net operating cash flow has decreased to -$1.18 million or 23.42% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • TRUETT-HURST INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, TRUETT-HURST INC reported poor results of -$0.17 versus -$0.14 in the prior year. This year, the market expects an improvement in earnings ($0.10 versus -$0.17).

You can view the full analysis from the report here: Truett-Hurst 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.

SkyPeople Fruit Juice ( SPU) was another company that pushed the Food & Beverage industry lower today. SkyPeople Fruit Juice was down $0.03 (3.0%) to $0.97 on heavy volume. Throughout the day, 68,214 shares of SkyPeople Fruit Juice exchanged hands as compared to its average daily volume of 34,500 shares. The stock ranged in price between $0.97-$1.05 after having opened the day at $1.00 as compared to the previous trading day's close of $1.00.

SkyPeople Fruit Juice, Inc., through its subsidiaries, produces and sells fruit juice concentrates, fruit beverages, and other fruit-related products in the People's Republic of China and internationally. SkyPeople Fruit Juice has a market cap of $27.2 million and is part of the consumer goods sector. Shares are down 42.9% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates SkyPeople Fruit Juice as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, 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 feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Highlights from TheStreet Ratings analysis on SPU go as follows:

  • The revenue growth came in higher than the industry average of 1.0%. Since the same quarter one year prior, revenues rose by 15.7%. 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, 0.44, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, SPU has a quick ratio of 1.81, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 43.28% is the gross profit margin for SKYPEOPLE FRUIT JUICE INC which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 0.40% trails the industry average.
  • 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. In comparison to the other companies in the Food Products industry and the overall market, SKYPEOPLE FRUIT JUICE INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Net operating cash flow has significantly decreased to $7.49 million or 54.97% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here: SkyPeople Fruit Juice 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.

More from Markets

Hormel's Jennie-O Recalls 91,388 Pounds of Turkey on Salmonella Fears

Hormel's Jennie-O Recalls 91,388 Pounds of Turkey on Salmonella Fears

Pfizer Plans Price Hikes for 41 Drugs Next Year

Pfizer Plans Price Hikes for 41 Drugs Next Year

Nvidia Shares Tank as Analysts Cut Price Targets

Nvidia Shares Tank as Analysts Cut Price Targets

Homebuilder Stocks Rebound From Dip on Rate Hike Expectations

Homebuilder Stocks Rebound From Dip on Rate Hike Expectations

Dow Ends Higher on Dovish Trump Tariff Comments; Nasdaq Falls

Dow Ends Higher on Dovish Trump Tariff Comments; Nasdaq Falls