NEW YORK ( TheStreet) -- Casual Male Retail Group (Nasdaq: CMRG) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • Net operating cash flow has increased to -$6.51 million or 15.29% when compared to the same quarter last year. In addition, CASUAL MALE RETAIL GRP INC has also modestly surpassed the industry average cash flow growth rate of 11.40%.
  • CASUAL MALE RETAIL GRP INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CASUAL MALE RETAIL GRP INC increased its bottom line by earning $0.33 versus $0.15 in the prior year. This year, the market expects an improvement in earnings ($0.42 versus $0.33).
  • 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. When compared to other companies in the Specialty Retail industry and the overall market, CASUAL MALE RETAIL GRP INC's return on equity is below that of both the industry average and the S&P 500.
  • 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 Specialty Retail industry. The net income has significantly decreased by 651.9% when compared to the same quarter one year ago, falling from $0.29 million to -$1.60 million.

Casual Male Retail Group, Inc., together with its subsidiaries, operates as a specialty retailer of men's apparel in the United States, Canada, and Europe. The company has a P/E ratio of 11.4, above the average retail industry P/E ratio of 10.7 and below the S&P 500 P/E ratio of 17.7. Casual Male Retail Group has a market cap of $181.7 million and is part of the services sector and retail industry. Shares are down 31.2% year to date as of the close of trading on Friday.

You can view the full Casual Male Retail Group Ratings Report or get investment ideas from our investment research center.
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