Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model
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, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.
- ACTIVE STOCK TRADERS: Check out TheStreet's special offer for Real Money, headlined by Jim Cramer, now!
Highlights from the ratings report include:
- SILU's very impressive revenue growth greatly exceeded the industry average of 19.4%. Since the same quarter one year prior, revenues leaped by 99.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- SILU has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Diversified Financial Services industry and the overall market, SPROTT RESOURCE LENDING CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- SILU has underperformed the S&P 500 Index, declining 10.07% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
Sprott Resource Lending Corp., a natural resource lender, provides bridge and mezzanine financing to precious and base metal mining, exploration, and development companies, as well as to oil and gas companies and other resource related businesses worldwide. The company has a P/E ratio of 71, below the average real estate industry P/E ratio of 72.3 and above the S&P 500 P/E ratio of 17.7. Sprott Resource Lending has a market cap of $217.3 million and is part of the
industry. Shares are up 2.9% year to date as of the close of trading on Tuesday.
You can view the full
or get investment ideas from our
-- Written by a member of TheStreet Ratings Staff