NEW YORK ( TheStreet) -- St. Joe Corporation (NYSE: JOE) has been downgraded by TheStreet Ratings from hold to sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • JOE's debt-to-equity ratio is very low at 0.06 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • Net operating cash flow has significantly increased by 358.31% to $37.45 million when compared to the same quarter last year. In addition, ST JOE CO has also vastly surpassed the industry average cash flow growth rate of -109.22%.
  • The gross profit margin for ST JOE CO is currently extremely low, coming in at 1.10%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, JOE's net profit margin of 60.90% significantly outperformed against the industry.
  • 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 Real Estate Management & Development industry and the overall market, ST JOE CO's return on equity significantly trails that of both the industry average and the S&P 500.
  • JOE has underperformed the S&P 500 Index, declining 10.47% 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.

The St. Joe Company, together with its subsidiaries, operates as a real estate development company in Florida. The company operates in four segments: Residential Real Estate, Commercial Real Estate, Rural Land Sales, and Forestry. St. Joe has a market cap of $1.8 billion and is part of the financial sector and real estate industry. Shares are down 9.5% year to date as of the close of trading on Wednesday.

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