NEW YORK ( TheStreet) -- Griffin Land & Nurseries (Nasdaq: GRIF) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and generally poor debt management. Highlights from the ratings report include:
- GRIFFIN LAND & NURSERIES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, GRIFFIN LAND & NURSERIES INC continued to lose money by earning -$0.88 versus -$1.08 in the prior year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food Products industry. The net income increased by 67.4% when compared to the same quarter one year prior, rising from -$1.31 million to -$0.43 million.
- The gross profit margin for GRIFFIN LAND & NURSERIES INC is rather high; currently it is at 52.20%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -5.10% is in-line with the industry average.
- Despite currently having a low debt-to-equity ratio of 0.60, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that GRIF's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.55 is low and demonstrates weak liquidity.
- Net operating cash flow has decreased to $2.84 million or 25.12% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
-- Written by a member of TheStreet RatingsStaff