This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

TSC Ratings' Updates: Getty Realty

The following ratings changes were generated on Friday, Dec. 19.

We've upgraded property and casual insurance company CastlePoint Holdings (CPHL) from sell to hold. Strengths include its robust revenue growth, good cash flow from operations and notable return on equity. However, we also find weaknesses including deteriorating net income and poor profit margins.

Revenue leaped by 62.8% since the same quarter last year, outperforming the industry average of 6.6% growth, though earnings per share declined. Net operating cash flow has increased to $51.24 million, or 42% compared with the same quarter last year, vastly surpassing the industry average cash flow growth rate of -12.26%.

CastlePoint underperforms both the S&P 500 and the industry average on the basis of return on equity. The company's gross profit margin is extremely low at 2.6%, having decreased significantly from the same period last year, and its net profit margin of -10.7% is below the industry average. Net income decreased from $10.5 million to -$13.15 million, underperforming the S&P 500 and the insurance industry.

We've downgraded Gruma (GMK - Get Report), which manufactures and distributes corn flour, tortillas, wheat flour and related products, from hold to sell, driven by its deteriorating net income, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Net income decreased from $72.2 million to -$164.4 million compared with the same quarter a year ago, significantly underperforming the food products industry as well as the S&P 500. Return on equity has also greatly decreased from the same quarter one year prior, a signal of major weakness. Gruma's gross profit margin is currently lower than what is desirable at 33.10%, having decreased from the same quarter the previous year, and its the net profit margin of -19.10% is significantly below that of the industry average.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
GMK $51.92 0.00%
GTY $18.16 0.00%
LUB $4.91 0.00%
WMK $49.62 0.00%
AAPL $123.25 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs