NEW YORK ( TheStreet) -- Hawaiian Holdings (Nasdaq: HA) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and poor profit margins.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 33.4%. Since the same quarter one year prior, revenues rose by 25.0%. 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.
  • Despite the current debt-to-equity ratio of 1.69, it is still below the industry average, suggesting that this level of debt is acceptable within the Airlines industry. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.76 is weak.
  • 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 Airlines industry. The net income has significantly decreased by 656.5% when compared to the same quarter one year ago, falling from $8.99 million to -$50.04 million.
  • The gross profit margin for HAWAIIAN HOLDINGS INC is rather low; currently it is at 17.50%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -12.70% is significantly below that of the industry average.

Hawaiian Holdings, Inc., through its subsidiary, Hawaiian Airlines, Inc., engages in the scheduled air transportation of passengers and cargo. The company has a P/E ratio of 4.1, equal to the average transportation industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Hawaiian has a market cap of $199.3 million and is part of the services sector and transportation industry. Shares are down 49.6% year to date as of the close of trading on Monday.

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