NEW YORK ( TheStreet) -- Griffin Land & Nurseries (Nasdaq: GRIF) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow, generally disappointing historical performance in the stock itself and generally weak debt management.

Highlights from the ratings report include:
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Food Products industry and the overall market, GRIFFIN LAND & NURSERIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, GRIF has underperformed the S&P 500 Index, declining 13.04% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • Despite currently having a low debt-to-equity ratio of 0.58, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that GRIF's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.52 is low and demonstrates weak liquidity.
  • Net operating cash flow has significantly decreased to -$1.95 million or 261.29% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Food Products industry. The net income has decreased by 15.4% when compared to the same quarter one year ago, dropping from -$1.84 million to -$2.13 million.

Griffin Land & Nurseries, Inc., through its subsidiaries, engages in real estate and landscape nursery operations in the United States. Griffin Land & Nurseries has a market cap of $134.5 million and is part of the services sector and diversified services industry. Shares are down 19.2% year to date as of the previous trading day's close.

You can view the full Griffin Land & Nurseries Ratings Report or get investment ideas from our investment research center.
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