Rating Change #3
CYS Investments Inc (CYS) 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, notable return on equity and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including generally poor debt management and feeble growth in the company's earnings per share.
Highlights from the ratings report include:
- CYS's very impressive revenue growth greatly exceeded the industry average of 17.9%. Since the same quarter one year prior, revenues leaped by 59.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, CYS INVESTMENTS INC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. 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.
- CYS INVESTMENTS INC's earnings per share declined by 10.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, CYS INVESTMENTS INC increased its bottom line by earning $3.63 versus $1.67 in the prior year. For the next year, the market is expecting a contraction of 47.6% in earnings ($1.90 versus $3.63).
- The debt-to-equity ratio is very high at 5.40 and currently higher than the industry average, implying that there is very poor management of debt levels within the company.
No company description available. The company has a P/E ratio of 19.3, above the average real estate industry P/E ratio of four and above the S&P 500 P/E ratio of 17.7. CYS Investments has a market cap of $1.64 billion and is part of the financial sector and real estate industry. Shares are down 1.5% year to date as of the close of trading on Tuesday.You can view the full CYS Investments Ratings Report or get investment ideas from our investment research center.
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