At the moment, the debt-to-equity of China Recycling Energy Corporation (NASDAQ:CREG) is low, standing at 24.82, a figure that is less than the 38.37 average recorded by the industry. This means that the company is currently holding a debt level at 49.27 M. CREG shares have a strong debt-to-equity ratio but their quick ratio which reads 1.20 is strong and might cause problems for them later in the future.
For the most recent quarter, the net income has dropped by -5756.67%. This weakness in their income has affected them and thus decreased their earnings to -$2.68 M. For the past 12 months, China Recycling Energy Corporation revenue has gone down by -100.00%. The sustained growth in their revenue has helped boost their earnings per share.
They have recorded a -51.57% declining earnings per share earnings.
The 12-month return on equity has significantly fallen to -10.68 in comparison to the same data for other companies in the same industry. This shows that there is a major weakness within the organization over the past one year. Comparing them to other companies in the industry and the overall Industrial Goods sector, the industry average is 9.98 while 12.37 is of the sector.
The company’s ROA is -7.76 when compared to 8.55 for the stocks operating in the same industry. This can be attributed to the strength recorded in the net income produced by total assets. Comparing it to other companies in the sector, China Recycling Energy Corporation ROE is above 12.37 that of both the sector average.
It has gone -1.01 from the 90.71 over the past 5 years. In addition to this, their operating margin is 1.01 higher than the industry average.
Added to that, this ratio has surpassed the industry net margin that stands at -4.04.
Still some above discussed indicators of the $12.42M company show strength while others show weakness. There is little evidence at the moment to justify the expectation of the CREG shares to either perform positively or negatively when compared to other stocks. The primary strengths of China Recycling Energy Corporation can be witnessed in its increased revenue, growing earnings per share, higher return on equity, increased operating cash and high net margin. Subsequently, financial analysis have also identified some weak areas that includes high debt, relatively high P/E ratio, lower return on assets and low net margin.