NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 1.0%. Since the same quarter one year prior, revenues rose by 45.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- XINYUAN REAL ESTATE CO -ADR has improved earnings per share by 35.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, XINYUAN REAL ESTATE CO -ADR increased its bottom line by earning $1.36 versus $0.64 in the prior year. This year, the market expects an improvement in earnings ($1.40 versus $1.36).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Real Estate Management & Development industry average. The net income increased by 30.4% when compared to the same quarter one year prior, rising from $21.63 million to $28.20 million.
- 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 Real Estate Management & Development industry and the overall market, XINYUAN REAL ESTATE CO -ADR's return on equity exceeds that of both the industry average and the S&P 500.
Xinyuan Real Estate Co. Ltd., together with its subsidiaries, engages in residential real estate development in China. The company has a P/E ratio of 1.9, equal to the average materials & construction industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Xinyuan Real Estate has a market cap of $185.3 million and is part of the
industry. Shares are up 47.4% year to date as of the close of trading on Monday.
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-- Written by a member of TheStreet RatingsStaff