NEW YORK (

TheStreet

)

-- Gentiva Health Services

(Nasdaq:

GTIV

) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • Net operating cash flow has significantly decreased to $2.72 million or 82.65% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • 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. In comparison to the other companies in the Health Care Providers & Services industry and the overall market, GENTIVA HEALTH SERVICES INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • GENTIVA HEALTH SERVICES INC has improved earnings per share by 29.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GENTIVA HEALTH SERVICES INC reported lower earnings of $1.89 versus $2.34 in the prior year. This year, the market expects an improvement in earnings ($2.73 versus $1.89).
  • GTIV's very impressive revenue growth greatly exceeded the industry average of 7.7%. Since the same quarter one year prior, revenues leaped by 54.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.

Gentiva Health Services, Inc. provides home health services and hospice care in the United States. The company has a P/E ratio of 9.4, below the average health services industry P/E ratio of 10.2 and below the S&P 500 P/E ratio of 17.7. Gentiva Health Services has a market cap of $574.8 million and is part of the

health care

sector and

health services

industry. Shares are down 29.6% year to date as of the close of trading on Tuesday.

You can view the full

Gentiva Health Services Ratings Report

or get investment ideas from our

investment research center

.

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