Camden Property Trust Stock Upgraded (CPT)

NEW YORK (TheStreet) -- Camden Property (NYSE:CPT) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, solid stock price performance and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

• CAMDEN PROPERTY TRUST reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CAMDEN PROPERTY TRUST turned its bottom line around by earning $0.14 versus -$1.07 in the prior year. This year, the market expects an improvement in earnings ($0.27 versus $0.14).
• The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 617.6% when compared to the same quarter one year prior, rising from $1.65 million to $11.84 million.
• Despite its growing revenue, the company underperformed as compared with the industry average of 18.4%. Since the same quarter one year prior, revenues slightly increased by 9.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
• Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
• Net operating cash flow has slightly increased to $86.04 million or 9.62% when compared to the same quarter last year. Despite an increase in cash flow, CAMDEN PROPERTY TRUST's cash flow growth rate is still lower than the industry average growth rate of 38.73%.

Camden Property Trust operates as a real estate investment trust (REIT) in the United States. It engages in the ownership, development, construction, and management of middle- to upper-market multifamily communities. The company has a P/E ratio of 53.3, below the average real estate industry P/E ratio of 221 and above the S&P 500 P/E ratio of 17.7. Camden Property has a market cap of $4.26 billion and is part of the financial sector and real estate industry. Shares are down 3.6% year to date as of the close of trading on Wednesday.

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