The US rating agency, the street Fitch, today issued an investment report giving a "sell" rating to a stock (Nyse:dang).
The following is a summary of the contents of the report:
We give a rating when the stock is "sold". Among the many bad factors, the most obvious is the depressed profit margin.
1 when the gross margin is very low, currently 18.25%. Still, there has been a slight increase in year-on-year. Net profit margin is 0.91%, below the industry average level.
2 when returns on equity (return on Equity) are significantly increased, this is the embodiment of the company's strength. But when compared with internet retailing and the market as a whole, the return on equity is less than the industry average and the standard and Poor's 500 index.
3 When there is no debt, the ratio of equity to debt is 0, which is a relatively positive side. The quick ratio is a lower 0.41, implying a weaker ability to repay short-term debt.
4 in the past year, when the stock price rose 249.48%, higher than the standard and poor 500 index of the same period of performance.
5 In recent quarters, when each share of diluted earnings rose significantly. We believe that this trend will continue. When it continued to lose money in the last fiscal year, it lost $0.30 for each share, while the deficit of $0.89 in fiscal year 2012 was diluted. Analysts expect that when fiscal year 2014 is expected to be diluted by 0.13 dollars per share.