NEW YORK ( TheStreet) -- Intergroup Corporation (Nasdaq: INTG) 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, generally weak debt management, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

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 34266.7% when compared to the same quarter one year ago, falling from $0.01 million to -$3.08 million.
  • The debt-to-equity ratio is very high at 13.33 and currently higher than the industry average, implying that there is very poor management of debt levels within the company.
  • The gross profit margin for INTERGROUP CORP is currently lower than what is desirable, coming in at 31.70%. Regardless of INTG's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, INTG's net profit margin of -20.90% significantly underperformed when compared to the industry average.
  • Net operating cash flow has decreased to $2.15 million or 23.88% when compared to the same quarter last year. Despite a decrease in cash flow of 23.88%, INTERGROUP CORP is in line with the industry average cash flow growth rate of -32.92%.
  • This stock's share value has moved by only 15.77% over the past year. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.

The Intergroup Corporation, through its subsidiaries, engages in the operation of a hotel located in San Francisco, California. Its hotel comprises 544 rooms with 5,400 square feet of space for the operation of health and beauty spa. The company has a P/E ratio of 8.3, above the average real estate industry P/E ratio of 6.4 and below the S&P 500 P/E ratio of 17.7. Intergroup has a market cap of $47 million and is part of the financial sector and real estate industry. Shares are down 10% year to date as of the close of trading on Tuesday.

You can view the full Intergroup Ratings Report or get investment ideas from our investment research center.