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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 increase in net income, good cash flow from operations and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and a generally disappointing performance in the stock itself.
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Highlights from the ratings report include:
- 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 121.6% when compared to the same quarter one year prior, rising from $23.07 million to $51.12 million.
- Net operating cash flow has slightly increased to $57.48 million or 4.27% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -37.20%.
- MACK-CALI REALTY CORP reported significant earnings per share improvement 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, MACK-CALI REALTY CORP swung to a loss, reporting -$0.88 versus $0.38 in the prior year. This year, the market expects an improvement in earnings (-$0.11 versus -$0.88).
- The gross profit margin for MACK-CALI REALTY CORP is rather low; currently it is at 18.94%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 31.69% is above that of the industry average.
- 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. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, MACK-CALI REALTY CORP's return on equity significantly trails that of both the industry average and the S&P 500.
Mack-Cali Realty Corporation is a real estate investment trust (REIT). It engages in the leasing, management, acquisition, development, and construction of commercial real estate properties in the United States. Mack-Cali has a market cap of $1.93 billion and is part of the financial sector and real estate industry. Shares are up 0.1% year to date as of the close of trading on Monday.
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