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 revenue growth, largely solid financial position with reasonable debt levels by most measures and compelling growth in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 18.9%. Since the same quarter one year prior, revenues rose by 11.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- REXI's debt-to-equity ratio is very low at 0.24 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
- After a year of stock price fluctuations, the net result is that REXI's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Diversified Financial Services industry and the overall market, RESOURCE AMERICA INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for RESOURCE AMERICA INC is rather low; currently it is at 19.90%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, REXI's net profit margin of 1.00% is significantly lower than the same period one year prior.
Resource America, Inc. operates as an asset management company. The company, through its subsidiaries, operates in three segments: Financial Fund Management; Real Estate; and Equipment Finance. Resource America Inc. CL A has a market cap of $111.2 million and is part of the
industry. Shares are up 36.1% year to date as of the close of trading on Monday.
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-- Written by a member of TheStreet RatingsStaff