3 Stocks Pushing The Transportation Industry Lower

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The Transportation industry as a whole closed the day up 0.1% versus the S&P 500, which was down 0.2%. Laggards within the Transportation industry included Danaos ( DAC), down 1.6%, Ultrapetrol Bahamas ( ULTR), down 9.3%, Overseas Shipholding Group ( OSGB), down 2.6%, Box Ships ( TEU), down 10.3% and FreeSeas ( FREE), down 3.5%.

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

Box Ships ( TEU) is one of the companies that pushed the Transportation industry lower today. Box Ships was down $0.08 (10.3%) to $0.66 on heavy volume. Throughout the day, 403,558 shares of Box Ships exchanged hands as compared to its average daily volume of 167,000 shares. The stock ranged in price between $0.62-$0.73 after having opened the day at $0.73 as compared to the previous trading day's close of $0.73.

Box Ships Inc., a shipping company, is engaged in the seaborne transportation of containers worldwide. As of December 31, 2013, it had a fleet of 9 containerships with a total capacity of approximately 43,925 twenty-foot equivalent units. Box Ships has a market cap of $18.9 million and is part of the services sector. Shares are down 77.7% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Box Ships a buy, 2 analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Box Ships as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

Highlights from TheStreet Ratings analysis on TEU go as follows:

  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Marine industry average. The net income increased by 16.6% when compared to the same quarter one year prior, going from $4.84 million to $5.65 million.
  • The gross profit margin for BOX SHIPS INC is rather high; currently it is at 57.67%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, TEU's net profit margin of 48.00% significantly outperformed against the industry.
  • TEU'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 76.63%, 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.
  • 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 Marine industry and the overall market on the basis of return on equity, BOX SHIPS INC underperformed against that of the industry average and is significantly less than that of the S&P 500.

You can view the full analysis from the report here: Box Ships Ratings Report

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At the close, Ultrapetrol Bahamas ( ULTR) was down $0.21 (9.3%) to $2.04 on heavy volume. Throughout the day, 126,493 shares of Ultrapetrol Bahamas exchanged hands as compared to its average daily volume of 42,800 shares. The stock ranged in price between $1.99-$2.46 after having opened the day at $2.22 as compared to the previous trading day's close of $2.25.

Ultrapetrol (Bahamas) Limited, an industrial shipping company, provides marine transportation services in South America, Central America, Europe, North America, and Asia. The company operates in three segments: River Business, Offshore Supply Business, and Ocean Business. Ultrapetrol Bahamas has a market cap of $329.3 million and is part of the services sector. Shares are down 39.8% year-to-date as of the close of trading on Monday. Currently there are 2 analysts who rate Ultrapetrol Bahamas a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Ultrapetrol Bahamas 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 ULTR 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 Marine industry. The net income has significantly decreased by 308.5% when compared to the same quarter one year ago, falling from $7.00 million to -$14.59 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 Marine industry and the overall market, ULTRAPETROL BAHAMAS LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for ULTRAPETROL BAHAMAS LTD is rather low; currently it is at 24.30%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -14.68% is significantly below that of the industry average.
  • The debt-to-equity ratio of 1.22 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, ULTR's quick ratio is somewhat strong at 1.42, demonstrating the ability to handle short-term liquidity needs.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 26.21%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 300.00% compared to the year-earlier 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.

You can view the full analysis from the report here: Ultrapetrol Bahamas 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.

Danaos ( DAC) was another company that pushed the Transportation industry lower today. Danaos was down $0.09 (1.6%) to $5.65 on average volume. Throughout the day, 10,705 shares of Danaos exchanged hands as compared to its average daily volume of 11,900 shares. The stock ranged in price between $5.54-$5.65 after having opened the day at $5.61 as compared to the previous trading day's close of $5.74.

Danaos Corporation, together with its subsidiaries, is engaged in the ownership and operation of containerships, as well as chartering of its vessels to liner companies in Greece and internationally. It primarily offers seaborne transportation services. Danaos has a market cap of $646.0 million and is part of the services sector. Shares are up 17.2% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Danaos a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Danaos as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

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Highlights from TheStreet Ratings analysis on DAC go as follows:

  • Powered by its strong earnings growth of 150.00% and other important driving factors, this stock has surged by 29.02% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • DANAOS CORP 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. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, DANAOS CORP turned its bottom line around by earning $0.34 versus -$0.95 in the prior year. This year, the market expects an improvement in earnings ($0.48 versus $0.34).
  • The revenue fell significantly faster than the industry average of 25.9%. Since the same quarter one year prior, revenues slightly dropped by 6.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Marine industry and the overall market, DANAOS CORP's return on equity is below that of both the industry average and the S&P 500.
  • The debt-to-equity ratio is very high at 4.25 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 0.24, which clearly demonstrates the inability to cover short-term cash needs.

You can view the full analysis from the report here: Danaos 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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