NEW YORK ( TheStreet) -- Cohen & Steers (NYSE: CNS) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 38.1%. Since the same quarter one year prior, revenues rose by 32.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • CNS has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Capital Markets industry and the overall market, COHEN & STEERS INC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • 38.40% is the gross profit margin for COHEN & STEERS INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 15.60% is above that of the industry average.
  • Net operating cash flow has significantly increased by 55.28% to $19.98 million when compared to the same quarter last year. Despite an increase in cash flow of 55.28%, COHEN & STEERS INC is still growing at a significantly lower rate than the industry average of 112.21%.

Cohen & Steers, Inc. provides investment management services to individual and institutional investors through a range of investment vehicles. The company manages portfolios specializing in U.S. The company has a P/E ratio of 24.2, above the average financial services industry P/E ratio of 24 and above the S&P 500 P/E ratio of 17.7. Cohen & Steers has a market cap of $1.21 billion and is part of the financial sector and financial services industry. Shares are up 10.7% year to date as of the close of trading on Friday.

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