StockStory Cites Growth and Profitability Concerns at Three Industrials
The publisher cited falling earnings per share at Shoals, weak sales at Itron and low margins at Arrow Electronics.
Key takeaways
- StockStory said Shoals' earnings per share fell 8.5% annually over two years.
- Itron's sales fell 1% annually over two years, according to StockStory.
- Arrow Electronics had a 12.2% gross margin, the publisher reported.
StockStory singled out Shoals, Itron and Arrow Electronics as industrial stocks it views cautiously, citing weaker profitability and growth measures. The publisher said industrials fell 6.4% over six months, while the S&P 500 returned 13.5%.
The analysis said Shoals' earnings per share declined 8.5% annually over the past two years, while its free-cash-flow margin narrowed 8.3 percentage points over five years. StockStory also cited waning returns on capital. It listed the shares at $8.65 and 16 times forward earnings.
For Itron, the publisher pointed to sales that fell 1% annually over two years and an operating margin of 6.8%, which it said was below the industry average. It also cited low returns on capital. StockStory listed the shares at $85.49 and 13.2 times forward earnings.
StockStory cited average annual revenue growth of 1.9% over five years at Arrow Electronics and a gross margin of 12.2%. It said returns on capital were shrinking amid increased competition, and listed the stock at $225.63 and 10.3 times forward earnings.
The publisher described industrial firms as exposed to economic cycles because of their generally high capital requirements.
This article was produced with the help of AI technology. Source: Yahoo Finance
