The Stock for Yingli Green Energy.Co.Ltd (ADR) (NYSE:YGE) is Higher but Ratings Are still a ‘Sell’

According to a Bloomberg report, Yingli Green Energy Hold.Co.Ltd (ADR) (NYSE:YGE), the well known solar company of China, shares rose 4.43% and reaching a price of $3.30. China is the most prominent name in the entire world for supplying solar panels and not only that it produces solar panels on a large scale for export purposes, but its National Energy Administration has also devised specific strategies and started numerous projects to promote usage in their own country. By encouraging its newest assignment of the ‘distributed solar power projects’, China will attain a greater number of orders regarding solar panels and the equipment that accompanies them. This will help them acquire their intended 8 gigawatts of solar energy distribution in the present year.

Chinese solar energy companies in general have all had their stocks ascending significantly in recent times, for example, Trina Solar Limited (ADR) (NYSE:TSL) has had a rise of 8.41% and has now reached $11.60, Jinko Solar Holding Co., Ltd (NYSE:JKS) had a 7.90% raise and reached $25.55 and RenaSola Limited (ADR) (NYSE:SOL) had a 7.96% rise and is now at $2.51.

However, Yingli Green Energy Hold.Co.Ltd (ADR) (NYSE:YGE) is presently being rated as a sell and their rating score is D. Despite the heightened position in the stock market right now, the company has some shortcomings that are difficult to ignore and the investors find it hard to stay confident. These shortcomings include high debt management risk, their unimpressive return on equity, their margins for profit which are not remarkable and their previous position in the stock market which is slightly depressing.

To elaborate further:

- Yingli Green Energy Hold.Co.Ltd (ADR) (NYSE:YGE) has a high ratio of debt-to-equity, being an exact 105.47, which is significantly higher than the average of the industry. This poses a higher risk regarding the debt level management of the company. Yingli Green Energy Hold.Co.Ltd (ADR) (NYSE:YGE) also has its quick ratio at 0.50 which makes it quite obvious that the company shall be unable to substitute the liquidity needs in a short period of time.

-The return of equity for Yingli Green Energy Hold.Co.Ltd (ADR) (NYSE:YGE) is prominently less than what it was the same time last year and is also quite less as compared to the other companies, the average trending within the industry and also the S&P 500.

- Even though an improvement has been noticed since last year, Yingli Green Energy Hold.Co.Ltd (ADR) (NYSE:YGE)’s gross profit margin of 15.68% is still considerably low. Again, Yingli Green Energy Hold.Co.Ltd (ADR) (NYSE:YGE) falls short of expectations with a net profit margin of 12.72% and is not what the industry average demands.

- Yingli Green Energy Hold.Co.Ltd (ADR) (NYSE:YGE) also had a fall of 17.71% since the same time last year, in their S&P 500 Index.

- Thankfully for the company though, Yingli Green Energy Hold.Co.Ltd (ADR) (NYSE:YGE)has had a positive outcome in its earnings per share, a 44.4% improvement since last year. The earnings per share growth have been good enough also, showing a progression in business. In the last financial year, Yingli Green Energy Hold.Co.Ltd (ADR) (NYSE:YGE) lost money with earnings of -$2.05 (and -$3.13 in the year before that). This year, predictions for -$0.46 are being made, which would be quite an achievement.