NEW YORK (
) -- Every trading day TheStreet Ratings' stock model reviews the investment ratings on around 4,300 U.S. traded stocks for potential upgrades or downgrades based on the latest available financial results and trading activity.
TheStreet Ratings released rating changes on 69 U.S. common stocks for week ending February 22, 2013. 50 stocks were upgraded and 19 stocks were downgraded by our stock model.
Rating Change #10
PS Business Parks Inc
has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.
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Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 14.7%. Since the same quarter one year prior, revenues rose by 13.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has remained constant at $51.00 million with no significant change when compared to the same quarter last year. Even though PS BUSINESS PARKS's cash flow growth was minimal, the firm managed to surpass its industry's average growth rate of -52.76%.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market on the basis of return on equity, PS BUSINESS PARKS underperformed against that of the industry average and is significantly less than that of the S&P 500.
- The gross profit margin for PS BUSINESS PARKS is currently lower than what is desirable, coming in at 33.00%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 25.38% trails that of the industry average.
PS Business Parks, Inc., a real estate investment trust (REIT), together with its subsidiaries, engages in the acquisition, development, ownership, and operation of commercial properties primarily multi-tenant flex, office, and industrial space. The company has a P/E ratio of 94.9, above the S&P 500 P/E ratio of 17.7. PS Business Parks has a market cap of $1.77 billion and is part of the financial sector and real estate industry. Shares are up 12.5% year to date as of the close of trading on Wednesday.
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PS Business Parks Ratings Report
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