NEW YORK ( TheStreet) -- Campus Crest Communities (NYSE: CCG) 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, compelling growth in net income and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins. Highlights from the ratings report include:
- CCG's very impressive revenue growth greatly exceeded the industry average of 15.0%. Since the same quarter one year prior, revenues leaped by 84.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 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 159.4% when compared to the same quarter one year prior, rising from -$7.46 million to $4.43 million.
- Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market on the basis of return on equity, CAMPUS CREST COMMUNITIES INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
- The gross profit margin for CAMPUS CREST COMMUNITIES INC is currently extremely low, coming in at 14.50%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, CCG's net profit margin of 17.40% is significantly lower than the same period one year prior.
- CCG's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 26.12%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
-- Written by a member of TheStreet RatingsStaff