3 Stocks Pushing The Diversified Services Industry Lower

The Diversified Services industry as a whole closed the day down 1.5% versus the S&P 500, which was down 1.7%. Laggards within the Diversified Services industry included Spar Group ( SGRP), down 2.4%, Industrial Services of America ( IDSA), down 4.1%, China Yida ( CNYD), down 10.2%, BG Staffing ( BGSF), down 3.2% and Lime Energy ( LIME), down 8.1%.

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

China Yida ( CNYD) is one of the companies that pushed the Diversified Services industry lower today. China Yida was down $0.34 (10.2%) to $3.01 on heavy volume. Throughout the day, 11,207 shares of China Yida exchanged hands as compared to its average daily volume of 5,600 shares. The stock ranged in price between $2.74-$3.14 after having opened the day at $3.02 as compared to the previous trading day's close of $3.35.

China Yida Holding Co., together with its subsidiaries, engages in the tourism business in Fujian and Jiangxi provinces in the People's Republic of China. China Yida has a market cap of $12.8 million and is part of the services sector. Shares are up 43.8% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates China Yida as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and disappointing return on equity.

Highlights from TheStreet Ratings analysis on CNYD go as follows:

  • The debt-to-equity ratio of 1.12 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with this, the company manages to maintain a quick ratio of 0.44, which clearly demonstrates the inability to cover short-term cash needs.
  • 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 Hotels, Restaurants & Leisure industry and the overall market, CHINA YIDA HOLDING CO's return on equity significantly trails that of both the industry average and the S&P 500.
  • CHINA YIDA HOLDING CO has improved earnings per share by 5.9% 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, CHINA YIDA HOLDING CO reported poor results of -$5.66 versus -$4.27 in the prior year.
  • Net operating cash flow has remained constant at -$4.12 million with no significant change when compared to the same quarter last year. Along with maintaining stable cash flow from operations, the firm exceeded the industry average cash flow growth rate of -14.37%.
  • After a year of stock price fluctuations, the net result is that CNYD's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.

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

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At the close, Industrial Services of America ( IDSA) was down $0.15 (4.1%) to $3.53 on light volume. Throughout the day, 100 shares of Industrial Services of America exchanged hands as compared to its average daily volume of 3,200 shares. The stock ranged in price between $3.53-$3.53 after having opened the day at $3.53 as compared to the previous trading day's close of $3.68.

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 $29.9 million and is part of the services sector. Shares are down 38.4% year-to-date as of the close of trading on Thursday.

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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 35.28%, 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 5.3%. 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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Spar Group ( SGRP) was another company that pushed the Diversified Services industry lower today. Spar Group was down $0.03 (2.4%) to $1.21 on heavy volume. Throughout the day, 12,180 shares of Spar Group exchanged hands as compared to its average daily volume of 4,400 shares. The stock ranged in price between $1.21-$1.24 after having opened the day at $1.24 as compared to the previous trading day's close of $1.24.

SPAR Group Inc., together with its subsidiaries, provides merchandising and marketing services worldwide. Spar Group has a market cap of $28.2 million and is part of the services sector. Shares are down 11.4% year-to-date as of the close of trading on Thursday.

TheStreet Ratings rates Spar Group as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, poor profit margins and a generally disappointing performance in the stock itself.

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Highlights from TheStreet Ratings analysis on SGRP go as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 79.9% when compared to the same quarter one year prior, rising from -$0.37 million to -$0.07 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 6.6%. Since the same quarter one year prior, revenues slightly increased by 4.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • SPAR GROUP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. Stable Earnings per share over the past year indicate the company has sound management over its earnings and share float. During the past fiscal year, SPAR GROUP INC's EPS of $0.15 remained unchanged from the prior years' EPS of $0.15.
  • The gross profit margin for SPAR GROUP INC is rather low; currently it is at 23.62%. Regardless of SGRP's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, SGRP's net profit margin of -0.25% significantly underperformed when compared to the industry average.
  • Net operating cash flow has decreased to $1.44 million or 41.66% 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.

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

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