NEW YORK ( TheStreet) -- Reis (Nasdaq: REIS) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good. Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 1261.3% when compared to the same quarter one year prior, rising from $0.11 million to $1.44 million.
- REIS's revenue growth trails the industry average of 25.9%. Since the same quarter one year prior, revenues rose by 13.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The gross profit margin for REIS INC is currently very high, coming in at 96.00%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 21.10% trails the industry average.
- Powered by its strong earnings growth of 200.00% and other important driving factors, this stock has surged by 38.95% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
- 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 Internet Software & Services industry and the overall market, REIS INC's return on equity significantly trails that of both the industry average and the S&P 500.