3 Stocks Pushing The Automotive Industry Lower

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The Automotive industry as a whole closed the day down 0.2% versus the S&P 500, which was unchanged. Laggards within the Automotive industry included Marine Products ( MPX), down 2.4%, SORL Auto Parts ( SORL), down 3.5%, Spartan Motors ( SPAR), down 4.6%, Accuride ( ACW), down 1.7% and Federal-Mogul Holdings ( FDML), down 1.8%.

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

Spartan Motors ( SPAR) is one of the companies that pushed the Automotive industry lower today. Spartan Motors was down $0.26 (4.6%) to $5.43 on light volume. Throughout the day, 52,936 shares of Spartan Motors exchanged hands as compared to its average daily volume of 76,900 shares. The stock ranged in price between $5.38-$5.71 after having opened the day at $5.71 as compared to the previous trading day's close of $5.69.

Spartan Motors, Inc, through its subsidiaries, engineers, manufactures, and sells heavy-duty and custom vehicles in the United States, Canada, South America, and Asia. Spartan Motors has a market cap of $187.7 million and is part of the consumer goods sector. Shares are down 15.1% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates Spartan Motors a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Spartan Motors 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 compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins.

Highlights from TheStreet Ratings analysis on SPAR go as follows:

  • SPAR's revenue growth has slightly outpaced the industry average of 8.9%. Since the same quarter one year prior, revenues rose by 14.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • SPAR's debt-to-equity ratio is very low at 0.03 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.28, which illustrates the ability to avoid short-term cash problems.
  • SPARTAN MOTORS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SPARTAN MOTORS INC reported poor results of -$0.18 versus -$0.07 in the prior year. This year, the market expects an improvement in earnings ($0.05 versus -$0.18).
  • The gross profit margin for SPARTAN MOTORS INC is rather low; currently it is at 15.44%. Regardless of SPAR'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 2.21% trails the industry average.
  • SPAR has underperformed the S&P 500 Index, declining 18.61% 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.

You can view the full analysis from the report here: Spartan Motors Ratings Report

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At the close, SORL Auto Parts ( SORL) was down $0.14 (3.5%) to $3.82 on light volume. Throughout the day, 14,488 shares of SORL Auto Parts exchanged hands as compared to its average daily volume of 63,500 shares. The stock ranged in price between $3.79-$3.95 after having opened the day at $3.93 as compared to the previous trading day's close of $3.96.

SORL Auto Parts, Inc. develops, manufactures, and distributes automotive brake systems and other safety related auto parts. It operates in two segments, Commercial Vehicles Brake Systems, etc.; and Passenger Vehicles Brake Systems, etc. SORL Auto Parts has a market cap of $77.0 million and is part of the consumer goods sector. Shares are down 0.5% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates SORL Auto Parts a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates SORL Auto Parts 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 disappointing return on equity, weak operating cash flow and poor profit margins.

Highlights from TheStreet Ratings analysis on SORL go as follows:

  • SORL's revenue growth has slightly outpaced the industry average of 8.9%. Since the same quarter one year prior, revenues rose by 14.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • SORL's debt-to-equity ratio is very low at 0.11 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, SORL has a quick ratio of 2.15, which demonstrates the ability of the company to cover short-term liquidity needs.
  • SORL AUTO PARTS INC reported flat earnings per share in the most recent quarter. 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, SORL AUTO PARTS INC reported lower earnings of $0.49 versus $0.66 in the prior year. This year, the market expects an improvement in earnings ($0.65 versus $0.49).
  • Net operating cash flow has significantly decreased to -$3.57 million or 90.86% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Auto Components industry and the overall market, SORL AUTO PARTS 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: SORL Auto Parts Ratings Report

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Marine Products ( MPX) was another company that pushed the Automotive industry lower today. Marine Products was down $0.20 (2.4%) to $8.24 on light volume. Throughout the day, 7,348 shares of Marine Products exchanged hands as compared to its average daily volume of 16,000 shares. The stock ranged in price between $8.24-$8.40 after having opened the day at $8.35 as compared to the previous trading day's close of $8.44.

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 $305.3 million and is part of the consumer goods sector. Shares are down 16.0% year-to-date as of the close of trading on Friday. 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 largely solid financial position with reasonable debt levels by most measures and notable return on equity. 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 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. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.30, which illustrates the ability to avoid short-term cash problems.
  • MARINE PRODUCTS CORP reported flat earnings per share in the most recent quarter. 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 ($0.26 versus $0.19).
  • MPX, with its decline in revenue, underperformed when compared the industry average of 3.8%. Since the same quarter one year prior, revenues slightly dropped by 9.7%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Leisure Equipment & Products industry and the overall market, MARINE PRODUCTS CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • The gross profit margin for MARINE PRODUCTS CORP is rather low; currently it is at 18.37%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 4.96% trails that of the industry average.

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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