NEW YORK (TheStreet) -- Comstock Holding Cos (CHCI - Get Report) was rising 8.43% to $1.93 on Friday after the real estate developer announced preliminary revenue growth of more than 300% for fiscal 2013.
The company reported year-over-year revenue growth of 364% to approximately $53.8 million from $11.6 million in 2012, while new orders increased 147% to 126 units from 51 units in 2012. Unit deliveries also increased 138% to 107 from 45 in 2012. Comstock's pipeline of controlled land inventory grew to approximately 637 lots at the end of 2013 from 354 at the end of 2012.
"Improving market conditions in the Washington, DC region and a relatively stable and healthy employment picture helped us put Comstock back on a growth path in 2013," said Chairman and CEO Christopher Clemente in the company's statement. "We're especially proud of the nearly fourfold increase in homebuilding revenue that we generated. We believe the limited supply of housing, affordability provided by attractive mortgage rates and improving consumer confidence should contribute to Comstock's prospects for additional growth and enhanced results in 2014. We look forward to reporting our final financial results for the fourth quarter and full year 2013 in March 2014."
TheStreet Ratings team rates COMSTOCK HOLDING COS INC as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about its recommendation:
Must Read: GE (GE) Declares 22 Cent Quarterly Dividend
"We rate COMSTOCK HOLDING COS INC (CHCI) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- CHCI's very impressive revenue growth greatly exceeded the industry average of 26.3%. Since the same quarter one year prior, revenues leaped by 174.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 85.00% and other important driving factors, this stock has surged by 36.32% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- COMSTOCK HOLDING COS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, COMSTOCK HOLDING COS INC swung to a loss, reporting -$0.47 versus $0.10 in the prior year.
- Net operating cash flow has significantly decreased to -$8.81 million or 115.53% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The debt-to-equity ratio is very high at 5.09 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
- You can view the full analysis from the report here: CHCI Ratings Report