NEW YORK ( TheStreet) -- Canterbury Park Holding Corporation (Nasdaq: CPHC) has been upgraded by TheStreet Ratings from sell 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 also find weaknesses including feeble growth in the company's earnings per share and poor profit margins. Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 9.4%. Since the same quarter one year prior, revenues slightly increased by 1.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- CPHC's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.36, which illustrates the ability to avoid short-term cash problems.
- The net income growth from the same quarter one year ago has exceeded that of the Hotels, Restaurants & Leisure industry average, but is less than that of the S&P 500. The net income increased by 8.4% when compared to the same quarter one year prior, going from -$0.38 million to -$0.35 million.
- The gross profit margin for CANTERBURY PARK HOLDING CORP is currently extremely low, coming in at 3.90%. Regardless of CPHC's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, CPHC's net profit margin of -3.00% significantly underperformed when compared to the industry average.
- CANTERBURY PARK HOLDING CORP reported flat earnings per share in the most recent quarter. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, CANTERBURY PARK HOLDING CORP swung to a loss, reporting -$0.24 versus $0.02 in the prior year.