Boston, MA 03/06/2014 (wallstreetpr) – Origin Agritech Ltd (NASDAQ:SEED) is as a “Sell” by TheStreet, with a score rating of D+ despite spiking to a 52 week high on Wednesday trading session. WednesdayMarch 5, 2014 saw the Origin’s stock surge by highs of 35% with total volumes of 4.31 million shares exchanging hands.
Origin Agritech Ltd (NASDAQ) weakness in the market can be seen in its deteriorating net income that has been declining over the past quarters with the company also grappling with a high debt management risk. Origin Agritech return on equity ratio is also questionable as it lags the industry average.
Highlights of the Sell rating
Origin Agritech Ltd (NASDAQ:SEED) net income has substantially declined when compared to the same quarter a year ago, the net income is also an underperformer when compared to the industry average and that of the S&P 500 index. The company’s net income has drop by 38.9% when compared to the same quarter a year ago falling from -$3.69 million to -$5.13 million.
Origin Agritech debt to equity ratio is currently high when compared to the industry, standing at 1.39 which suggests the company management team need to employ better debt management strategies. Its quick ratio currently stands at 0.15 demonstrating the company’s weakness in meeting short term cash needs.
Origin Agritech Ltd (NASDAQ) reported its first quarter earnings in which revenues slumped by 6% coming in a t RMB20.4 compared to RMB21.7 million reported for the first quarter of last year. Origin Agritech attributed the drop in revenue to ashort supply of canola seed plant
Return on equity ratio continues to be on a downward trend having decreased when compared to the same quarter a year ago. Origin Agritechdespite facing numerous weaknesses continues to command a huge gross profit margin of 49.36% which is considered strong in the industry. Despite having a high gross profit margins gross profits have slightly been decreasing when compared to a similar quarter a year ago.
Origin Agritech Ltd (NASDAQ:SEED) net profit margin continues to lag the industry average coming in at -152.30%, it is also an underperformer in terms of its revenue returns which lags industry average of 0.7%. Origin Agritech revenue has dropped by 7.6% over the past year alone with the drop having trickled down and severely hurt the company’s earnings per share.
