NEW YORK ( TheStreet) -- MoneyGram International (NYSE: MGI) has been downgraded by TheStreet Ratings from hold to sell. The area that we feel has been the company's primary weakness has been its feeble growth in its earnings per share. Highlights from the ratings report include:
- MGI's revenue growth has slightly outpaced the industry average of 20.4%. Since the same quarter one year prior, revenues rose by 20.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the IT Services industry. The net income increased by 285.6% when compared to the same quarter one year prior, rising from $6.85 million to $26.40 million.
- Compared to its closing price of one year ago, MGI's share price has jumped by 26.31%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in MGI do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
- The gross profit margin for MONEYGRAM INTERNATIONAL INC is rather high; currently it is at 62.60%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 7.70% trails the industry average.
- MONEYGRAM INTERNATIONAL INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MONEYGRAM INTERNATIONAL INC continued to lose money by earning -$1.10 versus -$1.49 in the prior year. This year, the market expects an improvement in earnings ($0.12 versus -$1.10).