Getty Realty Corporation Stock Upgraded (GTY)

NEW YORK ( TheStreet) -- Getty Realty Corporation (NYSE: GTY) 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, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 15.0%. Since the same quarter one year prior, revenues rose by 28.2%. 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.
  • The current debt-to-equity ratio, 0.43, is low and is below the industry average, implying that there has been successful management of debt levels.
  • Net operating cash flow has increased to $19.38 million or 36.05% when compared to the same quarter last year. In addition, GETTY REALTY CORP has also vastly surpassed the industry average cash flow growth rate of -54.19%.
  • GETTY REALTY CORP has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, GETTY REALTY CORP increased its bottom line by earning $1.79 versus $1.69 in the prior year.

Owns and leases retail motor fuel and convenience store properties and petroleum distribution terminals. As of Dec. 31, 2005, the company owned 814 properties and leased 241 additional properties in 13 states located principally in the Northeast. The company has a P/E ratio of 12.6, above the average real estate industry P/E ratio of 12 and below the S&P 500 P/E ratio of 17.7. Getty has a market cap of $553 million and is part of the financial sector and real estate industry. Shares are up 22.2% year to date as of the close of trading on Wednesday.

You can view the full Getty Ratings Report or get investment ideas from our investment research center.
-- Written by a member of TheStreet RatingsStaff