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 increase in net income. However, as a counter to these strengths, we also find weaknesses including generally poor debt management, disappointing return on equity and poor profit margins.
Highlights from the ratings report include:
- 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 Household Durables industry and the overall market, BROOKFIELD RESIDENTIAL PPTYS's return on equity significantly trails that of both the industry average and the S&P 500.
- The debt-to-equity ratio of 1.48 is relatively high when compared with the industry average, suggesting a need for better debt level management.
- BROOKFIELD RESIDENTIAL PPTYS 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, BROOKFIELD RESIDENTIAL PPTYS continued to lose money by earning -$0.18 versus -$2.01 in the prior year.
- BRP's very impressive revenue growth greatly exceeded the industry average of 18.6%. Since the same quarter one year prior, revenues leaped by 145.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
Brookfield Residential Properties Inc. operates as a land developer and homebuilder in North America. The company entitles and develops land, and builds homes for its own communities, as well as sells lots to third-party builders. Brasil Telecom Participacoes has a market cap of $980 million and is part of the
industry. Shares are unchanged year to date as of the close of trading on Friday.
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