- ARCI's revenue growth trails the industry average of 13.5%. Since the same quarter one year prior, revenues slightly increased by 0.3%. 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 debt-to-equity ratio is somewhat low, currently at 0.81, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.75 is somewhat weak and could be cause for future problems.
- The gross profit margin for APPLIANCE RECYCLING CTR AMER is currently lower than what is desirable, coming in at 26.86%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.65% trails that of the industry average.
- 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 Specialty Retail industry. The net income has significantly decreased by 51.0% when compared to the same quarter one year ago, falling from $1.13 million to $0.56 million.
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. The Retail industry as a whole closed the day down 0.5% versus the S&P 500, which was down 1.3%. Laggards within the Retail industry included Alon Blue Square Israel ( BSI), down 4.1%, QKL Stores ( QKLS), down 2.0%, Liberty Interactive ( LINTB), down 2.3%, Appliance Recycling Centers Of America ( ARCI), down 3.6% and Destination XL Group ( DXLG), down 1.6%. TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today: Appliance Recycling Centers Of America ( ARCI) is one of the companies that pushed the Retail industry lower today. Appliance Recycling Centers Of America was down $0.10 (3.6%) to $2.69 on light volume. Throughout the day, 6,103 shares of Appliance Recycling Centers Of America exchanged hands as compared to its average daily volume of 28,300 shares. The stock ranged in price between $2.69-$2.74 after having opened the day at $2.74 as compared to the previous trading day's close of $2.79. Appliance Recycling Centers of America, Inc., together with its subsidiaries, sells new household appliances through a chain of company-owned retail stores under the ApplianceSmart name. The company operates in two segments, Recycling and Retail. Appliance Recycling Centers Of America has a market cap of $15.7 million and is part of the services sector. Shares are up 1.4% year-to-date as of the close of trading on Thursday. 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 Appliance Recycling Centers Of America as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and a generally disappointing performance in the stock itself. Highlights from TheStreet Ratings analysis on ARCI go as follows: