Colony Financial Inc Stock Upgraded (CLNY)
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 robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- CLNY's very impressive revenue growth greatly exceeded the industry average of 17.3%. Since the same quarter one year prior, revenues leaped by 185.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- CLNY's debt-to-equity ratio is very low at 0.08 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
- COLONY FINANCIAL INC has improved earnings per share by 37.1% 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 year. We feel that this trend should continue. During the past fiscal year, COLONY FINANCIAL INC turned its bottom line around by earning $1.18 versus -$0.03 in the prior year. This year, the market expects an improvement in earnings ($1.56 versus $1.18).
- 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 205.8% when compared to the same quarter one year prior, rising from $5.17 million to $15.79 million.
- The gross profit margin for COLONY FINANCIAL INC is currently very high, coming in at 78.70%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 72.40% significantly outperformed against the industry average.
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Colony Financial, Inc., a real estate finance company, focuses on acquiring, originating, and managing commercial mortgage loans and other commercial real estate-related debt investments. The company qualifies as a real estate investment trust for federal income tax purposes. The company has a P/E ratio of 10.9, above the average real estate industry P/E ratio of 10.6 and below the S&P 500 P/E ratio of 17.7. Colony Financial has a market cap of $547.5 million and is part of the
sector and
industry. Shares are up 8.8% year to date as of the close of trading on Friday.
You can view the full
Colony Financial Ratings Report
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-- Written by a member of TheStreet RatingsStaff
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