What To Hold: 3 Hold-Rated Dividend Stocks STON, WSR, SMTP
Whitestone REIT (NYSE: WSR) shares currently have a dividend yield of 8.10%. WhiteStone REIT is a Maryland REIT engaged in owning and operating commercial properties in culturally diverse markets in major metropolitan areas. The company has a P/E ratio of 349.75. The average volume for Whitestone REIT has been 102,700 shares per day over the past 30 days. Whitestone REIT has a market cap of $307.0 million and is part of the real estate industry. Shares are up 4.6% year-to-date as of the close of trading on Wednesday. TheStreet Ratings rates Whitestone REIT as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and increase in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and poor profit margins. Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 7.3%. Since the same quarter one year prior, revenues rose by 39.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 210.1% when compared to the same quarter one year prior, rising from $0.20 million to $0.61 million.
- WHITESTONE REIT reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. 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, WHITESTONE REIT reported lower earnings of $0.04 versus $0.11 in the prior year. This year, the market expects an improvement in earnings ($0.24 versus $0.04).
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market on the basis of return on equity, WHITESTONE REIT underperformed against that of the industry average and is significantly less than that of the S&P 500.
- The gross profit margin for WHITESTONE REIT is rather low; currently it is at 20.39%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 3.76% significantly trails the industry average.
- You can view the full Whitestone REIT Ratings Report.
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