NEW YORK (TheStreet) -- Hersha Hospitality (NYSE:HT) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and poor profit margins. Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 18.1%. Since the same quarter one year prior, revenues rose by 15.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.96, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
- Net operating cash flow has increased to $21.15 million or 38.78% when compared to the same quarter last year. Despite an increase in cash flow, HERSHA HOSPITALITY TRUST's average is still marginally south of the industry average growth rate of 40.53%.
- The gross profit margin for HERSHA HOSPITALITY TRUST is rather low; currently it is at 19.80%. Regardless of HT's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, HT's net profit margin of -27.10% significantly underperformed when compared to the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 1705.9% when compared to the same quarter one year ago, falling from $1.34 million to -$21.50 million.
Latest Headlines about HT
Hersha Hospitality Trust's Series B Cumulative Redeemable Preferred Shares Ex-Dividend Reminder - 12/27/13
Hersha Hospitality Trust's CEO Presents At Bank Of America Merrill Lynch 2012 Global Real Estate Conference (Transcript)
Latest from TheStreet Wire
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV