NEW YORK (
-- Rural/Metro Corporation
) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow.
Rural/Metro Corporation, together with its subsidiaries, provides medical ambulance response services in the United States. The company offers two levels of ambulance services, Advanced Life Support (ALS) and Basic Life Support (BLS). The company has a P/E ratio of 60.7, below the average diversified services industry P/E ratio of 66 and above the S&P 500 P/E ratio of 23.5. Rural/Metro has a market cap of $384.1 million and is part of the
industry. Shares are up 4.6% year to date as of the close of trading on Wednesday.