NEW YORK (
) 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, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company has not been very careful in the management of its balance sheet.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 13.4%. Since the same quarter one year prior, revenues rose by 33.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- BLUEGREEN CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, BLUEGREEN CORP increased its bottom line by earning $0.89 versus $0.08 in the prior year.
- After a year of stock price fluctuations, the net result is that BXG's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Hotels, Restaurants & Leisure industry and the overall market, BLUEGREEN CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- The debt-to-equity ratio is very high at 2.20 and currently higher than the industry average, implying that there is very poor management of debt levels within the company.
Bluegreen Corporation markets, sells, and manages vacation ownership interests (VOIs) in resorts located in the United States and Aruba. Bluegreen has a market cap of $93.2 million and is part of the
industry. Shares are up 50.5% year to date as of the close of trading on Thursday.
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-- Written by a member of TheStreet RatingsStaff