NEW YORK ( TheStreet) -- Atlas Air Worldwide Holdings Inc (Nasdaq: AAWW) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:
  • The current debt-to-equity ratio, 0.38, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, AAWW has a quick ratio of 2.15, which demonstrates the ability of the company to cover short-term liquidity needs.
  • AAWW, with its decline in revenue, slightly underperformed the industry average of 7.2%. Since the same quarter one year prior, revenues slightly dropped by 1.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Net operating cash flow has decreased to $59.54 million or 35.65% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Air Freight & Logistics industry and the overall market, ATLAS AIR WORLDWIDE HLDG INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

Atlas Air Worldwide Holdings, Inc., through its subsidiaries, provides air cargo and outsourced aircraft operating solutions worldwide. It offers outsourced aircraft operating solutions, including the provision of an aircraft crew, maintenance, and insurance. The company has a P/E ratio of 8.3, equal to the average transportation industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Atlas Air Worldwide has a market cap of $910.2 million and is part of the services sector and transportation industry. Shares are down 38% year to date as of the close of trading on Monday.

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