Rating Change #3
BioMed Realty Trust Inc (BMR) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in stock price during the past year and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 17.3%. Since the same quarter one year prior, revenues slightly increased by 7.3%. 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 0.65, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
- BIOMED REALTY TRUST INC has improved earnings per share by 33.3% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, BIOMED REALTY TRUST INC's EPS of $0.18 remained unchanged from the prior years' EPS of $0.18. This year, the market expects an improvement in earnings ($0.28 versus $0.18).
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Real Estate Investment Trusts (REITs) industry average, but is greater than that of the S&P 500. The net income increased by 23.1% when compared to the same quarter one year prior, going from $12.76 million to $15.71 million.
BioMed Realty Trust, Inc. operates as a real estate investment trust (REIT) that focuses on providing real estate to the life science industry in the United States. The company has a P/E ratio of 98.5, below the average real estate industry P/E ratio of 107.4 and above the S&P 500 P/E ratio of 17.7. BioMed has a market cap of $2.4 billion and is part of the financial sector and real estate industry. Shares are up 3.7% year to date as of the close of trading on Friday.You can view the full BioMed Ratings Report or get investment ideas from our investment research center.
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