Rating Change #3
General Growth Properties Inc (GGP) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally poor debt management and poor profit margins.
Highlights from the ratings report include:
- This stock has managed to rise its share value by 7.30% over the past twelve months. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- GENERAL GROWTH PPTYS INC's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GENERAL GROWTH PPTYS INC continued to lose money by earning -$0.70 versus -$1.61 in the prior year. This year, the market expects an improvement in earnings (-$0.11 versus -$0.70).
- GGP, with its decline in revenue, underperformed when compared the industry average of 19.2%. Since the same quarter one year prior, revenues slightly dropped by 9.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Currently the debt-to-equity ratio of 1.96 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated.
- 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 3589.0% when compared to the same quarter one year ago, falling from $5.66 million to -$197.62 million.
General Growth Properties, Inc. operates as a real estate investment trust in the United States. It operates in two segments, Retail and Other, and Master Planned Communities. General Growth has a market cap of $16.69 billion and is part of the financial sector and real estate industry. Shares are up 17.1% year to date as of the close of trading on Wednesday.You can view the full General Growth Ratings Report or get investment ideas from our investment research center.
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