NEW YORK ( TheStreet) -- Medical Properties (NYSE: MPW) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.

Highlights from the ratings report include:
  • MPW's revenue growth has slightly outpaced the industry average of 14.8%. Since the same quarter one year prior, revenues rose by 19.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.83, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
  • MEDICAL PROPERTIES TRUST has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. 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, MEDICAL PROPERTIES TRUST reported lower earnings of $0.09 versus $0.41 in the prior year. This year, the market expects an improvement in earnings ($0.33 versus $0.09).
  • This stock has managed to decline in share value by 4.38% over the past twelve months. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 57.6% when compared to the same quarter one year ago, falling from $6.22 million to $2.64 million.

Medical Properties Trust, Inc. operates as a real estate investment trust (REIT) in the United States. It acquires, develops, and invests in healthcare facilities; and leases healthcare facilities to healthcare operating companies and healthcare providers. The company has a P/E ratio of 35.2, equal to the average real estate industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Medical has a market cap of $1.1 billion and is part of the financial sector and real estate industry. Shares are down 7.8% year to date as of the close of trading on Friday.

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