Rating Change #4
Tejon Ranch Corporation (TRC) has been upgraded by TheStreet Ratings from hold to buy. 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, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- TRC's very impressive revenue growth greatly exceeded the industry average of 10.4%. Since the same quarter one year prior, revenues leaped by 82.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- TRC's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 9.32, which clearly demonstrates the ability to cover short-term cash needs.
- TEJON RANCH CO 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. During the past fiscal year, TEJON RANCH CO increased its bottom line by earning $0.80 versus $0.20 in the prior year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Management & Development industry. The net income increased by 539.1% when compared to the same quarter one year prior, rising from -$1.19 million to $5.24 million.
- The gross profit margin for TEJON RANCH CO is rather high; currently it is at 57.50%. It has increased significantly from the same period last year. Along with this, the net profit margin of 26.40% significantly outperformed against the industry average.
Tejon Ranch Co., together with its subsidiaries, engages in the real estate development and agribusiness business activities in the United States. The company has a P/E ratio of 37.1, below the average real estate industry P/E ratio of 58.3 and above the S&P 500 P/E ratio of 17.7. Tejon Ranch has a market cap of $535.3 million and is part of the financial sector and real estate industry. Shares are up 17.6% year to date as of the close of trading on Tuesday.You can view the full Tejon Ranch Ratings Report or get investment ideas from our investment research center.
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