NEW YORK ( TheStreet) -- Excel (NYSE: EXL) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, unimpressive growth in net income, poor profit margins and generally disappointing historical performance in the stock itself. Highlights from the ratings report include:
- EXCEL TRUST INC's earnings per share declined by 28.6% in the most recent quarter compared to the same quarter a year ago. For the next year, the market is expecting a contraction of 73.1% in earnings (-$0.45 versus -$0.26).
- 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 57.9% when compared to the same quarter one year ago, falling from -$1.10 million to -$1.74 million.
- The gross profit margin for EXCEL TRUST INC is currently extremely low, coming in at 14.80%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, EXL's net profit margin of -11.30% significantly underperformed when compared to the industry average.
- The share price of EXCEL TRUST INC has not done very well: it is down 10.00% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market on the basis of return on equity, EXCEL TRUST INC underperformed against that of the industry average and is significantly less than that of the S&P 500.