NEW YORK ( TheStreet) -- Rand Logistics (Nasdaq: RLOG) 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 generally poor debt management, disappointing return on equity and poor profit margins. Highlights from the ratings report include:
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 35.30% over the past year, a rise that has exceeded that of the S&P 500 Index. Although RLOG had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- The revenue growth significantly trails the industry average of 65.8%. Since the same quarter one year prior, revenues rose by 24.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- RAND LOGISTICS INC's earnings per share improvement from the most recent quarter was slightly positive. 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, RAND LOGISTICS INC swung to a loss, reporting -$0.13 versus $0.04 in the prior year. This year, the market expects an improvement in earnings ($0.32 versus -$0.13).
- The debt-to-equity ratio of 1.36 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, RLOG has a quick ratio of 0.69, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- 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 Marine industry and the overall market, RAND LOGISTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.