NEW YORK (
-- Mobile Mini
) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, poor profit margins and weak operating cash flow.
Highlights from the ratings report include:
- MINI's revenue growth has slightly outpaced the industry average of 2.4%. Since the same quarter one year prior, revenues slightly increased by 6.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.89, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
- MINI's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 34.27%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, MINI is still more expensive than most of the other companies in its industry.
- The gross profit margin for MOBILE MINI INC is currently lower than what is desirable, coming in at 32.30%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 5.30% trails that of the industry average.
Mobile Mini, Inc. provides portable storage solutions in North America, the United Kingdom, and the Netherlands. The company has a P/E ratio of 17.3, below the average diversified services industry P/E ratio of 19.4 and below the S&P 500 P/E ratio of 17.7. Mobile Mini has a market cap of $638.3 million and is part of the
industry. Shares are down 21.6% year to date as of the close of trading on Tuesday.
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-- Written by a member of TheStreet Ratings Staff