The Diversified Services industry as a whole closed the day down 1.2% versus the S&P 500, which was down 1.0%. Laggards within the Diversified Services industry included Onvia ( ONVI), down 8.1%, Document Security Systems ( DSS), down 2.0%, Birner Dental Management Services ( BDMS), down 1.8%, MGT Capital Investments ( MGT), down 11.0% and Essex Rental ( ESSX), down 4.1%.

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

Envestnet ( ENV) is one of the companies that pushed the Diversified Services industry lower today. Envestnet was down $15.83 (35.0%) to $29.38 on heavy volume. Throughout the day, 5,217,512 shares of Envestnet exchanged hands as compared to its average daily volume of 332,400 shares. The stock ranged in price between $29.10-$42.00 after having opened the day at $41.64 as compared to the previous trading day's close of $45.21.

Envestnet, Inc., together with its subsidiaries, provides wealth management software and services to independent financial advisors and financial institutions in the United States and internationally. Envestnet has a market cap of $1.6 billion and is part of the services sector. Shares are down 8.0% year-to-date as of the close of trading on Monday. Currently there are 6 analysts who rate Envestnet a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Envestnet as a buy. 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 notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from TheStreet Ratings analysis on ENV go as follows:

  • The revenue growth came in higher than the industry average of 6.4%. Since the same quarter one year prior, revenues rose by 22.8%. 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.
  • ENV's debt-to-equity ratio of 0.68 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 3.62 is very high and demonstrates very strong liquidity.
  • ENVESTNET INC's earnings per share declined by 12.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ENVESTNET INC increased its bottom line by earning $0.38 versus $0.11 in the prior year. This year, the market expects an improvement in earnings ($1.00 versus $0.38).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Internet Software & Services industry and the overall market, ENVESTNET INC's return on equity is below that of both the industry average and the S&P 500.
  • The gross profit margin for ENVESTNET INC is currently lower than what is desirable, coming in at 27.19%. Regardless of ENV's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, ENV's net profit margin of 2.60% is significantly lower than the industry average.

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

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At the close, Essex Rental ( ESSX) was down $0.02 (4.1%) to $0.35 on heavy volume. Throughout the day, 146,194 shares of Essex Rental exchanged hands as compared to its average daily volume of 81,400 shares. The stock ranged in price between $0.35-$0.43 after having opened the day at $0.42 as compared to the previous trading day's close of $0.37.

Essex Rental Corp., through its subsidiaries, rents and distributes lifting equipment to the construction industry in North America. The company operates in four segments: Essex Crane Equipment Rentals; Coast Crane Equipment Rentals; Equipment Distribution; and Parts and Service. Essex Rental has a market cap of $11.0 million and is part of the services sector. Shares are down 72.3% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates Essex Rental as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on ESSX go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Trading Companies & Distributors industry average, but is greater than that of the S&P 500. The net income has decreased by 4.0% when compared to the same quarter one year ago, dropping from -$2.74 million to -$2.85 million.
  • The debt-to-equity ratio is very high at 4.48 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 0.10, which clearly demonstrates the inability to cover short-term cash needs.
  • 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 Trading Companies & Distributors industry and the overall market, ESSEX RENTAL CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • ESSX'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 82.48%, which is also worse than the performance of the S&P 500 Index. 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.
  • ESSEX RENTAL CORP reported flat earnings per share in the most recent quarter. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, ESSEX RENTAL CORP reported poor results of -$0.46 versus -$0.40 in the prior year. This year, the market expects an improvement in earnings (-$0.37 versus -$0.46).

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

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Document Security Systems ( DSS) was another company that pushed the Diversified Services industry lower today. Document Security Systems was down $0.00 (2.0%) to $0.18 on light volume. Throughout the day, 14,613 shares of Document Security Systems exchanged hands as compared to its average daily volume of 64,300 shares. The stock ranged in price between $0.18-$0.19 after having opened the day at $0.18 as compared to the previous trading day's close of $0.18.

Document Security Systems, Inc., through its subsidiaries, develops, manufactures, markets, and sells paper and plastic products to protect information from unauthorized scanning, copying, and digital imaging in the United States and internationally. Document Security Systems has a market cap of $8.3 million and is part of the services sector. Shares are down 59.2% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Document Security Systems a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Document Security Systems as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on DSS go as follows:

  • 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 Software industry and the overall market, DOCUMENT SECURITY SYS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has declined marginally to -$0.53 million or 8.40% when compared to the same quarter last year. Despite a decrease in cash flow DOCUMENT SECURITY SYS INC is still fairing well by exceeding its industry average cash flow growth rate of -27.87%.
  • DSS'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 86.03%, 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.
  • DOCUMENT SECURITY SYS INC has improved earnings per share by 42.9% 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, DOCUMENT SECURITY SYS INC swung to a loss, reporting -$0.98 versus $0.04 in the prior year.
  • Despite currently having a low debt-to-equity ratio of 0.55, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.92 is weak.

You can view the full analysis from the report here: Document Security Systems Ratings Report

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