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 poor profit margins, weak operating cash flow and feeble growth in its earnings per share.
Highlights from the ratings report include:
- The gross profit margin for HUDSON PACIFIC PPTYS INC is currently extremely low, coming in at 8.10%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -2.90% is significantly below that of the industry average.
- Net operating cash flow has declined marginally to $4.00 million or 4.83% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, HUDSON PACIFIC PPTYS INC has marginally lower results.
- HUDSON PACIFIC PPTYS INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, HUDSON PACIFIC PPTYS INC reported poor results of -$0.36 versus -$0.19 in the prior year. This year, the market expects an improvement in earnings (-$0.22 versus -$0.36).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Real Estate Investment Trusts (REITs) industry average, but is greater than that of the S&P 500. The net income increased by 9.6% when compared to the same quarter one year prior, going from -$1.18 million to -$1.07 million.
- Compared to where it was a year ago, the stock is now trading at a higher level, and has traded in line with the S&P 500. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
Hudson Pacific Properties, Inc. operates as a vertically integrated real estate trust (REIT) in the United States. Hudson Pacific has a market cap of $508.6 million and is part of the
industry. Shares are up 7.3% year to date as of the close of trading on Thursday.
You can view the full
or get investment ideas from our
-- Written by a member of TheStreet Ratings Staff