NEW YORK ( TheStreet) -- Glimcher Realty (NYSE: GRT) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally poor debt management and disappointing return on equity. Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 16.9%. Since the same quarter one year prior, revenues slightly increased by 7.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- GLIMCHER REALTY TRUST has improved earnings per share by 16.7% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. However, the consensus estimates suggest that there will be an upward trend in the coming year. During the past fiscal year, GLIMCHER REALTY TRUST continued to lose money by earning -$0.22 versus -$0.23 in the prior year. This year, the market expects an improvement in earnings (-$0.12 versus -$0.22).
- 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. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, GLIMCHER REALTY TRUST's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for GLIMCHER REALTY TRUST is currently lower than what is desirable, coming in at 26.20%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.20% significantly trails the industry average.