Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link
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 solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and generally higher debt management risk.
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Highlights from the ratings report include:
- Compared to its closing price of one year ago, CRESY's share price has jumped by 50.18%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- 48.47% is the gross profit margin for CRESUD SACIFYA which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -8.89% is in-line with the industry average.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 38.7%. Since the same quarter one year prior, revenues fell by 30.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Real Estate Management & Development industry. The net income has significantly decreased by 370.5% when compared to the same quarter one year ago, falling from $4.12 million to -$11.14 million.
- Net operating cash flow has significantly decreased to -$12.27 million or 205.46% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
Cresud Sociedad Anonima Comercial, Inmobiliaria, Financiera y Agropecuaria, an agricultural company, produces basic agricultural commodities in Brazil and other Latin American countries. Cresud has a market cap of $609.4 million and is part of the consumer goods sector and food & beverage industry. Shares are up 20.1% year to date as of the close of trading on Thursday.
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