3 Stocks Pushing The Consumer Non-Durables 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 Consumer Non-Durables industry as a whole closed the day down 0.3% versus the S&P 500, which was up 0.1%. Laggards within the Consumer Non-Durables industry included China Shengda Packaging Group ( CPGI), down 7.7%, CTI Industries ( CTIB), down 2.5%, Fuwei Films (Holdings ( FFHL), down 5.1%, Standard Register ( SR), down 4.2% and CCA Industries ( CAW), down 4.5%.

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

Fuwei Films (Holdings ( FFHL) is one of the companies that pushed the Consumer Non-Durables industry lower today. Fuwei Films (Holdings was down $0.05 (5.1%) to $0.92 on average volume. Throughout the day, 12,200 shares of Fuwei Films (Holdings exchanged hands as compared to its average daily volume of 11,100 shares. The stock ranged in price between $0.89-$0.97 after having opened the day at $0.90 as compared to the previous trading day's close of $0.97.

Fuwei Films (Holdings) Co., Ltd., through its subsidiary, Fuwei Films (Shandong) Co., Ltd., develops, manufactures, and distributes plastic films using the biaxially- oriented stretch technique in the People's Republic of China. Fuwei Films (Holdings has a market cap of $12.8 million and is part of the consumer goods sector. Shares are down 13.4% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Fuwei Films (Holdings as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, unimpressive growth in net income, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on FFHL go as follows:

  • FUWEI FILMS HOLDINGS CO's earnings per share declined by 21.7% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, FUWEI FILMS HOLDINGS CO reported poor results of -$0.74 versus -$0.66 in the prior year.
  • 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 Chemicals industry. The net income has decreased by 23.5% when compared to the same quarter one year ago, dropping from -$3.00 million to -$3.71 million.
  • 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. Compared to other companies in the Chemicals industry and the overall market, FUWEI FILMS HOLDINGS CO's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for FUWEI FILMS HOLDINGS CO is currently extremely low, coming in at 3.71%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -32.84% is significantly below that of the industry average.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, FFHL has underperformed the S&P 500 Index, declining 16.24% 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: Fuwei Films (Holdings Ratings Report

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At the close, CTI Industries ( CTIB) was down $0.10 (2.5%) to $3.90 on light volume. Throughout the day, 600 shares of CTI Industries exchanged hands as compared to its average daily volume of 1,900 shares. The stock ranged in price between $3.90-$4.01 after having opened the day at $4.01 as compared to the previous trading day's close of $4.00.

CTI Industries Corporation develops, manufactures, and supplies flexible film products for novelty, packaging and container, and custom product applications worldwide. CTI Industries has a market cap of $13.0 million and is part of the consumer goods sector. Shares are down 32.7% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates CTI Industries as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, unimpressive growth in net income, generally high debt management risk, weak operating cash flow and poor profit margins.

Highlights from TheStreet Ratings analysis on CTIB go as follows:

  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 28.55%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 100.00% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • 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 Household Durables industry. The net income has significantly decreased by 116.1% when compared to the same quarter one year ago, falling from -$0.06 million to -$0.12 million.
  • The debt-to-equity ratio of 1.47 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, CTIB has a quick ratio of 0.55, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has significantly decreased to -$2.01 million or 231.14% 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 gross profit margin for CTI INDUSTRIES CORP is currently lower than what is desirable, coming in at 27.02%. Regardless of CTIB'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 -0.91% trails the industry average.

You can view the full analysis from the report here: CTI Industries Ratings Report

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China Shengda Packaging Group ( CPGI) was another company that pushed the Consumer Non-Durables industry lower today. China Shengda Packaging Group was down $0.07 (7.7%) to $0.86 on heavy volume. Throughout the day, 17,200 shares of China Shengda Packaging Group exchanged hands as compared to its average daily volume of 4,300 shares. The stock ranged in price between $0.79-$0.96 after having opened the day at $0.96 as compared to the previous trading day's close of $0.93.

China Shengda Packaging Group Inc., a paper packaging company, designs, manufactures, and sells flexo-printed and color-printed corrugated paper cartons of various sizes and strengths primarily in the People's Republic of China. China Shengda Packaging Group has a market cap of $29.9 million and is part of the consumer goods sector. Shares are down 9.4% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates China Shengda Packaging Group 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 reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and poor profit margins.

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Highlights from TheStreet Ratings analysis on CPGI go as follows:

  • CPGI's revenue growth has slightly outpaced the industry average of 9.8%. Since the same quarter one year prior, revenues rose by 11.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • CPGI's debt-to-equity ratio is very low at 0.23 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 1.25, which illustrates the ability to avoid short-term cash problems.
  • CHINA SHENGDA PACKAGING GP 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, CHINA SHENGDA PACKAGING GP reported lower earnings of $0.06 versus $0.14 in the prior year.
  • CPGI'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 34.19%, 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. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • 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. Compared to other companies in the Containers & Packaging industry and the overall market, CHINA SHENGDA PACKAGING GP's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here: China Shengda Packaging Group 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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