NEW YORK ( TheStreet) -- MoneyGram International (NYSE: MGI) 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, compelling growth in net income and solid stock price performance. However, as a counter to these strengths, we find that the company has not been very careful in the management of its balance sheet.

Highlights from the ratings report include:
  • The debt-to-equity ratio is very high at 8.07 and currently higher than the industry average, implying that there is very poor management of debt levels within the company.
  • 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 IT Services industry and the overall market, MONEYGRAM INTERNATIONAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The net income growth from the same quarter one year ago has exceeded that of the IT Services industry average, but is less than that of the S&P 500. The net income increased by 29.9% when compared to the same quarter one year prior, rising from $10.81 million to $14.05 million.
  • MONEYGRAM INTERNATIONAL INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MONEYGRAM INTERNATIONAL INC continued to lose money by earning -$1.10 versus -$1.49 in the prior year. This year, the market expects an improvement in earnings ($0.12 versus -$1.10).
  • MGI's revenue growth trails the industry average of 16.8%. Since the same quarter one year prior, revenues slightly increased by 1.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.

MoneyGram International, Inc., through its subsidiaries, provides payment services worldwide. It operates in two segments, Global Funds Transfer and Financial Paper Products. MoneyGram International has a market cap of $314.8 million and is part of the services sector and diversified services industry. Shares are up 45.8% year to date as of the close of trading on Thursday.

You can view the full MoneyGram International Ratings Report or get investment ideas from our investment research center.
null

If you liked this article you might like

Cognizant Technology, Advanced Micro Devices: 'Mad Money' Lightning Round

Play Defense, Play the Dollar: Cramer's 'Mad Money' Recap (Tuesday 8/29/17)

Western Union Turning Australian Gas Stations into Cash Transfer Hotspots

U.S. Regulators Increasing Scrutiny for China Investments, Derailing High-Profile Takeovers

Ant Financial Resubmits Application for Approval of Moneygram Purchase