3 Stocks Pushing The Diversified Services Industry Lower

The Diversified Services industry as a whole was unchanged today versus the S&P 500, which was up 0.2%. Laggards within the Diversified Services industry included Document Security Systems ( DSS), down 4.8%, Industrial Services of America ( IDSA), down 2.8%, AeroCentury ( ACY), down 2.5%, MGT Capital Investments ( MGT), down 8.8% and Bioanalytical Systems ( BASI), down 4.3%.

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

AeroCentury ( ACY) is one of the companies that pushed the Diversified Services industry lower today. AeroCentury was down $0.20 (2.5%) to $7.72 on heavy volume. Throughout the day, 3,153 shares of AeroCentury exchanged hands as compared to its average daily volume of 1,600 shares. The stock ranged in price between $7.70-$7.92 after having opened the day at $7.92 as compared to the previous trading day's close of $7.92.

AeroCentury Corp., an aircraft operating lessor and finance company, acquires and invests in used regional aircraft and aircraft engines for lease to regional airlines and commercial users worldwide. AeroCentury has a market cap of $12.2 million and is part of the financial sector. Shares are down 9.1% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates AeroCentury a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates AeroCentury 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 and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on ACY go as follows:

  • The debt-to-equity ratio is very high at 3.54 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • 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 Trading Companies & Distributors industry and the overall market, AEROCENTURY CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $2.96 million or 38.05% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • ACY'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 48.27%, 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.
  • ACY, with its decline in revenue, underperformed when compared the industry average of 4.7%. Since the same quarter one year prior, revenues fell by 10.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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

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At the close, Industrial Services of America ( IDSA) was down $0.11 (2.8%) to $3.89 on average volume. Throughout the day, 4,042 shares of Industrial Services of America exchanged hands as compared to its average daily volume of 3,100 shares. The stock ranged in price between $3.88-$3.92 after having opened the day at $3.88 as compared to the previous trading day's close of $4.00.

Industrial Services of America, Inc. operates as a recycler of stainless steel, ferrous, and non-ferrous scrap in the United States and Canada. It operates in two segments, Recycling and Waste Services. Industrial Services of America has a market cap of $31.5 million and is part of the financial sector. Shares are down 33.0% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates Industrial Services of America as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on IDSA 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 Commercial Services & Supplies industry. The net income has significantly decreased by 380.8% when compared to the same quarter one year ago, falling from -$0.65 million to -$3.10 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 38.52%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 333.33% compared to the year-earlier 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.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Commercial Services & Supplies industry and the overall market, INDUSTRIAL SERVICES AMER INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • INDUSTRIAL SERVICES AMER INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, INDUSTRIAL SERVICES AMER INC continued to lose money by earning -$0.97 versus -$1.96 in the prior year.
  • IDSA, with its decline in revenue, underperformed when compared the industry average of 5.2%. Since the same quarter one year prior, revenues fell by 29.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

You can view the full analysis from the report here: Industrial Services of America 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 $0.01 (4.8%) to $0.18 on average volume. Throughout the day, 54,557 shares of Document Security Systems exchanged hands as compared to its average daily volume of 63,000 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 $0.19.

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 financial sector. Shares are down 58.0% year-to-date as of the close of trading on Wednesday. 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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