NEW YORK ( TheStreet) -- Alexander's (NYSE: ALX) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, good cash flow from operations, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally poor debt management on most measures that we evaluated. Highlights from the ratings report include:
- ALEXANDER'S INC has improved earnings per share by 20.6% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, ALEXANDER'S INC reported lower earnings of $13.01 versus $25.91 in the prior year.
- The gross profit margin for ALEXANDER'S INC is rather high; currently it is at 51.50%. Regardless of ALX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ALX's net profit margin of 29.00% compares favorably to the industry average.
- Net operating cash flow has significantly increased by 66.23% to $40.55 million when compared to the same quarter last year. In addition, ALEXANDER'S INC has also vastly surpassed the industry average cash flow growth rate of -86.16%.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 47.19% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ALX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- ALX's revenue growth has slightly outpaced the industry average of 5.8%. Since the same quarter one year prior, revenues slightly increased by 7.4%. Growth in the company's revenue appears to have helped boost the earnings per share.