3 Stocks Pushing The Transportation Industry Lower

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The Transportation industry as a whole closed the day down 0.5% versus the S&P 500, which was down 0.3%. Laggards within the Transportation industry included PHI ( PHII), down 1.7%, Sino-Global Shipping America ( SINO), down 2.7%, Ultrapetrol Bahamas ( ULTR), down 4.4%, Rand Logistics ( RLOG), down 2.5% and CHC Group ( HELI), down 8.1%.

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

Ultrapetrol Bahamas ( ULTR) is one of the companies that pushed the Transportation industry lower today. Ultrapetrol Bahamas was down $0.03 (4.4%) to $0.75 on light volume. Throughout the day, 8,872 shares of Ultrapetrol Bahamas exchanged hands as compared to its average daily volume of 52,000 shares. The stock ranged in price between $0.75-$0.78 after having opened the day at $0.78 as compared to the previous trading day's close of $0.78.

Ultrapetrol (Bahamas) Limited, an industrial shipping company, provides marine transportation services in South America, Europe, Central America, 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 $114.0 million and is part of the services sector. Shares are down 63.3% year-to-date as of the close of trading on Friday. 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 generally high debt management risk, disappointing return on equity, weak operating cash flow, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on ULTR go as follows:

  • The debt-to-equity ratio of 1.31 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, ULTR maintains a poor quick ratio of 0.99, which illustrates the inability to avoid short-term cash problems.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. 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.
  • Net operating cash flow has significantly decreased to $0.90 million or 93.59% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The gross profit margin for ULTRAPETROL BAHAMAS LTD is currently lower than what is desirable, coming in at 29.49%. Regardless of ULTR's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, ULTR's net profit margin of -6.03% significantly underperformed when compared to the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 75.97%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 33.33% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

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

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At the close, Sino-Global Shipping America ( SINO) was down $0.04 (2.7%) to $1.31 on light volume. Throughout the day, 12,346 shares of Sino-Global Shipping America exchanged hands as compared to its average daily volume of 27,900 shares. The stock ranged in price between $1.31-$1.39 after having opened the day at $1.35 as compared to the previous trading day's close of $1.35.

Sino-Global Shipping America, Ltd. provides customized shipping agency services primarily in the People's Republic of China. The company also offers shipping and chartering services, and inland transportation management services, as well as ship and crew management services for dry bulk ships. Sino-Global Shipping America has a market cap of $10.1 million and is part of the services sector. Shares are down 13.9% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates Sino-Global Shipping America a buy, 1 analyst rates it a sell, and none rate it a hold.

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TheStreet Ratings rates Sino-Global Shipping America as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on SINO go as follows:

  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Transportation Infrastructure industry average. The net income increased by 7.7% when compared to the same quarter one year prior, going from $0.33 million to $0.35 million.
  • SINO's revenue growth trails the industry average of 45.1%. Since the same quarter one year prior, revenues rose by 20.7%. 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 gross profit margin for SINO-GLOBAL SHIPPING AMERICA is rather high; currently it is at 52.97%. Regardless of SINO's high profit margin, it has managed to decrease from the same period last year.
  • The share price of SINO-GLOBAL SHIPPING AMERICA has not done very well: it is down 24.45% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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.
  • Net operating cash flow has significantly decreased to -$0.90 million or 215.78% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here: Sino-Global Shipping America Ratings Report

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PHI ( PHII) was another company that pushed the Transportation industry lower today. PHI was down $0.49 (1.7%) to $28.24 on light volume. Throughout the day, 480 shares of PHI exchanged hands as compared to its average daily volume of 900 shares. The stock ranged in price between $26.10-$28.24 after having opened the day at $26.10 as compared to the previous trading day's close of $28.73.

PHI, Inc., together with its subsidiaries, provides transportation services to, from, and among offshore facilities involved in the oil and gas exploration, development, and production industry in North America, West Africa, and the Middle East. PHI has a market cap of $86.4 million and is part of the services sector. Shares are down 20.2% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates PHI 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, a generally disappointing performance in the stock itself and poor profit margins.

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Highlights from TheStreet Ratings analysis on PHII go as follows:

  • The revenue growth came in higher than the industry average of 22.4%. Since the same quarter one year prior, revenues slightly increased by 3.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.89, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with this, the company maintains a quick ratio of 4.11, which clearly demonstrates the ability to cover short-term cash needs.
  • PHI INC 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, PHI INC reported lower earnings of $2.08 versus $3.77 in the prior year.
  • PHII has underperformed the S&P 500 Index, declining 21.88% 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.
  • 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 Energy Equipment & Services industry and the overall market, PHI 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: PHI Ratings Report

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