NEW YORK (
) 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, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 17.4%. Since the same quarter one year prior, revenues rose by 26.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 246.15% and other important driving factors, this stock has surged by 51.05% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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.
- The gross profit margin for OCWEN FINANCIAL CORP is currently very high, coming in at 77.40%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 16.50% is above that of the industry average.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Thrifts & Mortgage Finance industry and the overall market on the basis of return on equity, OCWEN FINANCIAL CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
Ocwen Financial Corporation, through its subsidiaries, provides residential and commercial mortgage loan servicing, special servicing, and asset management services. The company operates in two segments, Ocwen Asset Management and Ocwen Solutions. The company has a P/E ratio of 31.4, above the average banking industry P/E ratio of 28.7 and above the S&P 500 P/E ratio of 17.7. Ocwen Financial has a market cap of $1.3 billion and is part of the
industry. Shares are up 38.2% year to date as of the close of trading on Tuesday.
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