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 34.58 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. The 100.00% yoy growth of CREG’s revenue has gone up that of the industry average by -3.11%. For the past 12 months, China Recycling Energy Corporation revenue has gone up by 103.11%. 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 0.06 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 8.12 while 11.71 is of the sector.
China Recycling Energy Corporation (NASDAQ:CREG) has a price-to-earnings ratio of 74.07 which is higher than the 22.31 industry average at the moment. In addition to their unfavorable P/E ratio, China Recycling Energy Corporation has maintained a gross margin of -75.19. This shows whether the company has what it takes to effectively turn the revenue into profit.
The company’s ROA is -0.09 when compared to 4.21 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 11.71 that of both the sector average.
The operating profit margin for China Recycling Energy Corporation (CREG) is 98,390.52%, a figure which is considered to be strong. It has gone 7.74 from the 98.33 over the past 5 years. In addition to this, their operating margin is 90.26 higher than the industry average.
The net profit margin which stood at 54.04 on average in the past 5 years has dropped to -3,729.77 in the last 12 months. Added to that, this ratio has missed the industry net margin that stands at 4.28.
Still some above discussed indicators of the $7.28M 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.