NEW YORK ( TheStreet) -- CoreSite Realty (NYSE: COR) has been upgraded by TheStreet Ratings from sell to hold. 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 and solid stock price performance. However, as a counter to these strengths, we find that the company's profit margins have been poor overall. Highlights from the ratings report include:
- COR's revenue growth has slightly outpaced the industry average of 15.6%. Since the same quarter one year prior, revenues rose by 19.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.52, is low and is below the industry average, implying that there has been successful management of debt levels.
- Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, CORESITE REALTY CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Real Estate Investment Trusts (REITs) industry average, but is greater than that of the S&P 500. The net income increased by 106.3% when compared to the same quarter one year prior, rising from -$2.93 million to $0.18 million.
- The gross profit margin for CORESITE REALTY CORP is currently extremely low, coming in at 5.90%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, COR's net profit margin of 0.40% is significantly lower than the same period one year prior.
-- Written by a member of TheStreet RatingsStaff