Taubman Centers Inc. Stock Upgraded (TCO)
NEW YORK (
)
(NYSE:
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, expanding profit margins and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- 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 315.3% when compared to the same quarter one year prior, rising from $36.80 million to $152.84 million.
- 41.20% is the gross profit margin for TAUBMAN CENTERS INC which we consider to be strong. Regardless of TCO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TCO's net profit margin of 75.90% significantly outperformed against the industry.
- Compared to its closing price of one year ago, TCO's share price has jumped by 28.00%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- TAUBMAN CENTERS INC's earnings per share declined by 13.6% 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, TAUBMAN CENTERS INC increased its bottom line by earning $0.99 versus $0.85 in the prior year. This year, the market expects an improvement in earnings ($1.00 versus $0.99).
- TCO, with its decline in revenue, underperformed when compared the industry average of 17.2%. Since the same quarter one year prior, revenues slightly dropped by 4.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
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Taubman Centers, Inc. operates as a real estate investment trust. As of June 30, 2005, the company owned a 63% managing general partner's interest in The Taubman Realty Group Limited Partnership (the operating partnership). The company has a P/E ratio of 63.8, above the average real estate industry P/E ratio of 60.8 and above the S&P 500 P/E ratio of 17.7. Taubman Centers has a market cap of $3.81 billion and is part of the
sector and
industry. Shares are up 9.7% year to date as of the close of trading on Thursday.
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Taubman Centers Ratings Report
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-- Written by a member of TheStreet RatingsStaff
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