NEW YORK ( TheStreet) -- Mack-Cali Realty (NYSE: CLI) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, reasonable valuation levels, good cash flow from operations, impressive record of earnings per share growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins. Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 127.2% when compared to the same quarter one year prior, rising from $7.13 million to $16.19 million.
- Net operating cash flow has slightly increased to $81.46 million or 3.00% when compared to the same quarter last year. In addition, MACK-CALI REALTY CORP has also vastly surpassed the industry average cash flow growth rate of -56.48%.
- MACK-CALI REALTY CORP 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 year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, MACK-CALI REALTY CORP increased its bottom line by earning $0.81 versus $0.62 in the prior year. For the next year, the market is expecting a contraction of 17.3% in earnings ($0.67 versus $0.81).
- CLI, with its decline in revenue, underperformed when compared the industry average of 16.9%. Since the same quarter one year prior, revenues slightly dropped by 7.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
-- Written by a member of TheStreet RatingsStaff