- 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 Computers & Peripherals industry and the overall market, ON TRACK INNOVATIONS's return on equity significantly trails that of both the industry average and the S&P 500.
- OTIV'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 56.28%, 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.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Computers & Peripherals industry average, but is greater than that of the S&P 500. The net income increased by 9.2% when compared to the same quarter one year prior, going from -$2.22 million to -$2.01 million.
- The revenue fell significantly faster than the industry average of 36.8%. Since the same quarter one year prior, revenues fell by 24.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- Despite currently having a low debt-to-equity ratio of 0.42, 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 1.31 is sturdy.
The Consumer Durables industry as a whole closed the day down 0.7% versus the S&P 500, which was down 0.2%. Laggards within the Consumer Durables industry included Natuzzi SPA ( NTZ), down 6.4%, SGOCO Group ( SGOC), down 4.0%, Emerson Radio ( MSN), down 2.4%, Vapor ( VPCO), down 11.4% and On Track Innovations ( OTIV), down 1.8%. TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today: On Track Innovations ( OTIV) is one of the companies that pushed the Consumer Durables industry lower today. On Track Innovations was down $0.02 (1.8%) to $1.07 on light volume. Throughout the day, 48,694 shares of On Track Innovations exchanged hands as compared to its average daily volume of 157,700 shares. The stock ranged in price between $1.05-$1.09 after having opened the day at $1.09 as compared to the previous trading day's close of $1.09. On Track Innovations Ltd. designs, develops, and markets cashless payment solutions. The company operates through three segments: Retail and Mass Transit, Petroleum, and Parking. On Track Innovations has a market cap of $41.7 million and is part of the consumer goods sector. Shares are down 33.9% year-to-date as of the close of trading on Monday. Currently there are 2 analysts who rate On Track Innovations a buy, no analysts rate it a sell, and none rate it a hold. EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE. TheStreet Ratings rates On Track Innovations as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself. Highlights from TheStreet Ratings analysis on OTIV go as follows: