Boston, MA 03/12/2014 (wallstreetpr) – Clean Diesel Technologies, Inc. (NASDAQ:CDTI) a master of advanced emission control solution was the subject of intense trading on Wednesday trading session, which saw its stock go up by as high of 160% after announcing it had started the production of catalysts featuring high performance Mixed Phase Catalyst for Honda’s 2015 Acura TLX model.
Shipments for the catalysts are expected to begin in the first half of 2014 as the demand of greater emission reduction continues to surge in the automobile industry. There has been immense pressure for car manufacturers to reduce their emission to the environment especially with the passing of new automobile rules for soot reduction.
Clean Diesel rated as a “Sell”
Clean Diesel Technologies, Inc. (NASDAQ:CDTI) stock in the market is currently rated as a “Sell” by analysts at TheStreet as a result of below par investments measures that are causing the company to underperform. The company is currently grappling with a high management risk with a disappointing return on equity as well as weak operating cash flows.
Clean Diesel Technologies, Inc. (NASDAQ:CDTI) return to equity ratio currently stands at a high of 1.47 when compared to that of the industry average. The company’s return on equity has greatly reduced for the recent quarter when compared to that of the same quarter a year ago. This is one of its major weaknesses when compared to other players in the chemical industry.
Clean Diesel Technologies, Inc. (NASDAQ:CDTI) net operating cash flow has also been on a decline dropping by highs of 104.95% when compared to the same quarter a year ago which is also lower when compared to the industry average. Its gross profit margin is also lower when compared to the industry as it comes in at 32.36% although it has slightly improved when compared to the same quarter a year ago.
Clean Diesel Technologies, Inc. (NASDAQ:CDTI) revenue has also been an underperformer when compared to the industry average of 13.6% having dropped by 1.4%. The drop in revenue has not trickled down the company bottom line as earnings per share are still high.
