NEW YORK ( TheStreet) -- BRT Realty (NYSE: BRT) has been upgraded by TheStreet Ratings from sell 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 expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, BRT REALTY TRUST's return on equity significantly trails that of both the industry average and the S&P 500.
  • In its most recent trading session, BRT has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. This company's share value has not moved any higher or lower since its value 12 months ago.
  • The current debt-to-equity ratio, 0.40, is low and is below the industry average, implying that there has been successful management of debt levels.
  • BRT's very impressive revenue growth greatly exceeded the industry average of 6.0%. Since the same quarter one year prior, revenues leaped by 180.4%. Growth in the company's revenue appears to have helped boost the earnings per share.

BRT Realty Trust operates as a real estate investment trust in the United States. The company primarily engages in originating and holding for investment senior and junior commercial mortgage loans secured by real property. BRT has a market cap of $91.7 million and is part of the financial sector and real estate industry. Shares are down 8.9% year to date as of the close of trading on Tuesday.

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