3 Stocks Pushing The Consumer Durables Industry Lower

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.

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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:

  • 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.

You can view the full analysis from the report here: On Track Innovations Ratings Report

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At the close, Vapor ( VPCO) was down $0.10 (11.4%) to $0.78 on heavy volume. Throughout the day, 272,239 shares of Vapor exchanged hands as compared to its average daily volume of 92,700 shares. The stock ranged in price between $0.78-$0.86 after having opened the day at $0.83 as compared to the previous trading day's close of $0.88.

Vapor Corp. designs, markets, and distributes vaporizers, e-liquids, electronic cigarettes, and accessories primarily in the United States and Canada. Vapor has a market cap of $5.4 million and is part of the consumer goods sector. Shares are down 85.5% year-to-date as of the close of trading on Monday.

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

Highlights from TheStreet Ratings analysis on VPCO go as follows:

  • VAPOR CORP/NV 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. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, VAPOR CORP/NV swung to a loss, reporting -$4.15 versus $0.15 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 Tobacco industry. The net income has significantly decreased by 174.0% when compared to the same quarter one year ago, falling from -$1.45 million to -$3.98 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 Tobacco industry and the overall market, VAPOR CORP/NV's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 96.22%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 100.00% 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.
  • Net operating cash flow has remained constant at -$2.15 million with no significant change when compared to the same quarter last year. Despite stable cash flow, VAPOR CORP/NV's cash flow growth rate is still lower than the industry average growth rate of 40.87%.

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

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Natuzzi SPA ( NTZ) was another company that pushed the Consumer Durables industry lower today. Natuzzi SPA was down $0.15 (6.4%) to $2.21 on heavy volume. Throughout the day, 19,115 shares of Natuzzi SPA exchanged hands as compared to its average daily volume of 12,400 shares. The stock ranged in price between $2.10-$2.37 after having opened the day at $2.32 as compared to the previous trading day's close of $2.36.

Natuzzi S.p.A. designs, manufactures, and markets leather and fabric upholstered furniture worldwide. Natuzzi SPA has a market cap of $123.4 million and is part of the consumer goods sector. Shares are up 52.3% year-to-date as of the close of trading on Monday.

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

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Highlights from TheStreet Ratings analysis on NTZ go as follows:

  • Net operating cash flow has significantly decreased to -$9.56 million or 123.81% 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 NATUZZI SPA is currently lower than what is desirable, coming in at 31.43%. Regardless of NTZ's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, NTZ's net profit margin of -7.99% significantly underperformed when compared to the industry average.
  • NTZ has underperformed the S&P 500 Index, declining 6.44% 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, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Household Durables industry average, but is greater than that of the S&P 500. The net income increased by 22.0% when compared to the same quarter one year prior, going from -$13.50 million to -$10.53 million.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Household Durables industry and the overall market, NATUZZI SPA's return on equity significantly trails that of both the industry average and the S&P 500.

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

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