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NEW YORK (TheStreet) -- Sino-Global Shipping America (SINO - Get Report) has been upgraded by TheStreet Ratings from Sell to Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SINO-GLOBAL SHIPPING AMERICA (SINO) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust 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 unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite its growing revenue, the company underperformed as compared with the industry average of 28.7%. Since the same quarter one year prior, revenues rose by 25.1%. 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.
- SINO 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 this, the company maintains a quick ratio of 5.33, which clearly demonstrates the ability to cover short-term cash needs.
- 47.56% is the gross profit margin for SINO-GLOBAL SHIPPING AMERICA which we consider to be strong. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, SINO's net profit margin of 4.42% significantly trails the industry average.
- Net operating cash flow has significantly decreased to -$1.49 million or 317.15% 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, 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 Transportation Infrastructure industry. The net income has significantly decreased by 72.6% when compared to the same quarter one year ago, falling from $0.50 million to $0.14 million.
- You can view the full analysis from the report here: SINO Ratings Report