NEW YORK ( TheStreet) -- Fortegra Financial (NYSE: FRF) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including poor profit margins and unimpressive growth in net income. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 7.0%. Since the same quarter one year prior, revenues slightly increased by 4.7%. 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.
- Compared to other companies in the Insurance industry and the overall market on the basis of return on equity, FORTEGRA FINANCIAL CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- Looking at the price performance of FRF's shares over the past 12 months, there is not much good news to report: the stock is down 41.59%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter.
- The change in net income from the same quarter one year ago has exceeded that of the Insurance industry average, but is less than that of the S&P 500. The net income has decreased by 7.0% when compared to the same quarter one year ago, dropping from $4.45 million to $4.14 million.
- The gross profit margin for FORTEGRA FINANCIAL CORP is rather low; currently it is at 19.00%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 7.30% is above that of the industry average.
-- Written by a member of TheStreet RatingsStaff