NEW YORK ( TheStreet) -- Maui Land & Pineapple Company (NYSE: MLP) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and poor profit margins.

Highlights from the ratings report include:
  • 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 Management & Development industry. The net income has significantly decreased by 106.7% when compared to the same quarter one year ago, falling from $20.03 million to -$1.34 million.
  • The gross profit margin for MAUI LAND & PINEAPPLE CO is currently lower than what is desirable, coming in at 28.80%. Regardless of MLP's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, MLP's net profit margin of -39.70% significantly underperformed when compared to the industry average.
  • The revenue fell significantly faster than the industry average of 24.4%. Since the same quarter one year prior, revenues fell by 12.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.14 is very low and demonstrates very weak liquidity.
  • Compared to where it was trading a year ago, MLP's share price has not changed very much due to (a) the relatively weak year-over-year performance of the overall market, (b) the company's stagnant earnings, and (c) other mixed results. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.

Maui Land & Pineapple Company, Inc. develops, sells, and manages residential, resort, commercial, and industrial real estate properties. It owns approximately 23,000 acres of land on Maui; and manages properties, utilities, and a nature preserve at the Kapalua Resort. The company has a P/E ratio of 2.1, below the average real estate industry P/E ratio of 3.4 and below the S&P 500 P/E ratio of 17.7. Maui Land & Pineapple has a market cap of $79.4 million and is part of the financial sector and real estate industry. Shares are down 19.1% year to date as of the close of trading on Friday.

You can view the full Maui Land & Pineapple Ratings Report or get investment ideas from our investment research center.
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Maui Land & Pineapple (MLP) Upgraded From Sell to Hold