Temple-Inland Inc. Stock Downgraded (TIN)

NEW YORK ( TheStreet) -- Temple-Inland (NYSE: TIN) 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, good cash flow from operations and solid stock price performance. 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 generally poor debt management.

Highlights from the ratings report include:
  • TIN's revenue growth trails the industry average of 18.9%. Since the same quarter one year prior, revenues slightly increased by 0.8%. 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.
  • Net operating cash flow has increased to $120.00 million or 10.09% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -20.38%.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. When compared to other companies in the Containers & Packaging industry and the overall market, TEMPLE-INLAND INC's return on equity is below that of both the industry average and the S&P 500.

Temple-Inland Inc., through its subsidiaries, manufactures and sells corrugated packaging and building products in the United States and Mexico. The company has a P/E ratio of 18.6, equal to the average consumer non-durables industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Temple-Inland has a market cap of $3.4 billion and is part of the consumer goods sector and consumer non-durables industry. Shares are up 48.3% year to date as of the close of trading on Thursday.

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

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