NEW YORK (
) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its generally weak debt management, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
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Highlights from the ratings report include:
- The debt-to-equity ratio is very high at 67.41 and currently higher than the industry average, implying that there is very poor management of debt levels within the company.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Capital Markets industry and the overall market, CIFC CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$32.71 million or 16252.50% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- DFR has underperformed the S&P 500 Index, declining 7.20% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- CIFC CORP 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 two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, CIFC CORP swung to a loss, reporting -$1.60 versus $6.29 in the prior year.
CIFC Corp. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides investment management services to its clients. CIFC Corp. was founded in 2004 and is based in New York, New York. The company has a P/E ratio of 0.8, below the S&P 500 P/E ratio of 17.7. CIFC has a market cap of $133.2 million and is part of the
industry. Shares are down 36.2% year to date as of the close of trading on Thursday.
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-- Written by a member of TheStreet Ratings Staff
TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.