Boston, MA 03/18/2014 (wallstreetpr) – Clean Diesel Technologies, Inc. (NASDAQ:CDTI) continues to surge in the market after announcing it has begun the production of catalysts featuring its high performance Mixed Phase Catalysts Technology for Honda Acura TLX model.
The announcement saw the company register a 52 week high with the company commanding an average 30 day moving average of 517, 800 shares. Clean Diesel technologies has a market cap of $30 million and is currently rated by two research equity firms as a “Buy”.
Analyst at TheStreet currently rate Clean Diesel technologies as a “sell” as the company continues to show weaknesses in high debt management risk as well as disappointing return on equity in its recent quarterly earnings report. Clean Diesel technologies is also grappling with weak operating cash flow as well as poor profit margins that are necessitating the “Sell” rating according to TheStreet.
Highlights of the Sell rating
Clean Diesel Technologies, Inc. (NASDAQ:CDTI)’s debt to equity ratio is at a high of 1.47 suggesting a lot has to be done by the company to manage the debt levels. Its Quick ratio also stands at 0.66 suggesting how difficult it is for the company to meet its short term cash needs.
Clean Diesel Technologies return on equity has also substantially dropped in the recent quarter earnings compared to a similar quarter the prior year. The debt to equity ratio trails that of the industry average as well as that of the S&P 500 index.
The company’s net operating cash flow has also decreased by 104.95% when compared to the same quarter last year to a low of -$0.08 million. The company’s growth metrics is also lower compared to that of the industry average. Clean Diesel technologies growth profit margin currently stands at a low of 32.36%.
The low gross profit margin has slightly increased compared to that of the same quarter last year, its net profit margin on the other hand has also significantly underperformed coming in at -7.67 lower compared to that of the industry average.
Clean Diesel Technologies, Inc. (NASDAQ:CDTI)’s revenue has dropped by 1.4% on a year over year basis although the decline has not trickled down the company’s bottom line to affect the increase in earnings per share.
