Thai Metal Trade Pcl scores the lowest on earnings quality among 10 companies in the country's materials sector, tracked by at least three analysts, data from Thomson Reuters StarMine shows.
The steel company has low Earnings Quality and SmartHoldings scores of 3 and 16 respectively. A poor earnings quality score suggests poor earnings sustainability while a low SmartHoldings score suggests a future decrease in institutional ownership.
The company's net margin lags the industry average by 8.3 percent and its free cash flow as a percentage of sales also lags the industry average by 4.5 percent.
Thai Metal Trade has a below average Analyst Revision Model (ARM) score of 42.
Of the three analysts tracking the stock, one each recommend a strong buy, buy and hold respectively.
The stock is down over 12 percent year-on-year, while the broader index is up over 8 percent for the same period.
Another stock with poor Earnings Quality and SmartHoldings scores is Sahaviriya Steel Industry with an Earnings Quality score of 6 and a SmartHoldings score of 2.
A low score on StarMine's Earnings Quality model indicates poor earnings sustainability over the next 12 months based on a company's past operating performance.
The StarMine SmartHoldings model is a global stock selection model that ranks stocks based on the expected future increase, or decrease in institutional ownership.
StarMine's Analyst Revision Model ranks stocks based on analysts' revision of earnings and revenue estimates and changes in their ratings and usually gives additional weight to analysts who have been more accurate in the past. (Reporting By Reshma Apte; Editing by Gopakumar Warrier)