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.

The Consumer Non-Durables industry as a whole closed the day up 0.5% versus the S&P 500, which was down 0.2%. Laggards within the Consumer Non-Durables industry included Fuwei Films (Holdings ( FFHL), down 4.7%, China Xiniya Fashion ( XNY), down 3.5%, Verso ( VRS), down 5.9%, Blyth ( BTH), down 2.7% and CryoPort ( CYRX), down 2.5%.

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

Verso ( VRS) is one of the companies that pushed the Consumer Non-Durables industry lower today. Verso was down $0.02 (5.9%) to $0.40 on light volume. Throughout the day, 50,611 shares of Verso exchanged hands as compared to its average daily volume of 135,800 shares. The stock ranged in price between $0.40-$0.44 after having opened the day at $0.42 as compared to the previous trading day's close of $0.42.

Verso Corporation manufactures and supplies coated papers in the United States. The company offers coated groundwood paper used for catalogs and magazines; and coated freesheet paper used primarily for annual reports, brochures, and magazine covers. Verso has a market cap of $36.0 million and is part of the consumer goods sector. Shares are down 87.8% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates Verso as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on VRS 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 Paper & Forest Products industry. The net income has significantly decreased by 34.6% when compared to the same quarter one year ago, falling from -$90.61 million to -$122.00 million.
  • Net operating cash flow has significantly decreased to -$204.00 million or 111.87% 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 VERSO CORP is currently extremely low, coming in at 9.68%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, VRS's net profit margin of -15.13% significantly underperformed when compared to the industry average.
  • VRS'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 86.22%, 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.
  • VERSO CORP has improved earnings per share by 10.0% 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, VERSO CORP reported poor results of -$6.62 versus -$2.09 in the prior year.

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

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At the close, China Xiniya Fashion ( XNY) was down $0.06 (3.5%) to $1.68 on light volume. Throughout the day, 3,867 shares of China Xiniya Fashion exchanged hands as compared to its average daily volume of 18,400 shares. The stock ranged in price between $1.63-$1.68 after having opened the day at $1.68 as compared to the previous trading day's close of $1.74.

China Xiniya Fashion Limited designs, manufactures, and sells men's business casual and business formal apparel and accessories to retail customers in the People's Republic of China. China Xiniya Fashion has a market cap of $24.5 million and is part of the consumer goods sector. Shares are down 20.8% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates China Xiniya Fashion as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and poor profit margins.

Highlights from TheStreet Ratings analysis on XNY go as follows:

  • CHINA XINIYA FASHION LTD-ADR's earnings per share declined by 40.6% 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, CHINA XINIYA FASHION LTD-ADR swung to a loss, reporting -$1.95 versus $1.12 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 Textiles, Apparel & Luxury Goods industry. The net income has significantly decreased by 38.4% when compared to the same quarter one year ago, falling from $4.28 million to $2.64 million.
  • 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 Textiles, Apparel & Luxury Goods industry and the overall market, CHINA XINIYA FASHION LTD-ADR'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 $12.29 million or 67.99% 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 CHINA XINIYA FASHION LTD-ADR is currently lower than what is desirable, coming in at 29.10%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 15.14% is above that of the industry average.

You can view the full analysis from the report here: China Xiniya Fashion Ratings Report

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Fuwei Films (Holdings ( FFHL) was another company that pushed the Consumer Non-Durables industry lower today. Fuwei Films (Holdings was down $0.05 (4.7%) to $1.03 on light volume. Throughout the day, 892 shares of Fuwei Films (Holdings exchanged hands as compared to its average daily volume of 15,300 shares. The stock ranged in price between $0.91-$1.03 after having opened the day at $0.91 as compared to the previous trading day's close of $1.08.

Fuwei Films (Holdings) Co., Ltd., together with its subsidiaries, produces 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 $14.1 million and is part of the consumer goods sector. Shares are up 62.4% year-to-date as of the close of trading on Monday.

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, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.

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Highlights from TheStreet Ratings analysis on FFHL go as follows:

  • FUWEI FILMS HOLDINGS CO's earnings per share declined by 18.8% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, FUWEI FILMS HOLDINGS CO reported poor results of -$0.87 versus -$0.74 in the prior year.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Chemicals industry average. The net income has decreased by 13.2% when compared to the same quarter one year ago, dropping from -$2.14 million to -$2.42 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. 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 7.95%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -28.41% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$1.24 million or 210.27% 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: Fuwei Films (Holdings Ratings Report

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