NEW YORK ( TheStreet) -- International Shipholding Corporation (NYSE: ISH) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its increase in net income, attractive valuation levels and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • Net operating cash flow has decreased to $6.97 million or 44.10% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The gross profit margin for INTL SHIPHOLDING CORP is rather low; currently it is at 23.90%. It has decreased from the same quarter the previous year. Despite the weak results of the gross profit margin, the net profit margin of 37.40% has significantly outperformed against the industry average.
  • INTL SHIPHOLDING CORP reported significant earnings per share improvement 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, INTL SHIPHOLDING CORP reported lower earnings of $2.06 versus $5.79 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Marine industry. The net income increased by 127.8% when compared to the same quarter one year prior, rising from $10.57 million to $24.08 million.

International Shipholding Corporation, through its subsidiaries, provides maritime transportation services to commercial and governmental customers primarily under medium to long-term time charters or contracts of affreightment in the United States and internationally. The company has a P/E ratio of five, equal to the average transportation industry P/E ratio and below the S&P 500 P/E ratio of 17.7. International Shipholding has a market cap of $145.1 million and is part of the services sector and transportation industry. Shares are down 21.2% year to date as of the close of trading on Tuesday.

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