MI Developments Inc. Stock Upgraded (MIM)

NEW YORK ( TheStreet) -- MI Developments (NYSE: MIM) 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, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

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 Management & Development industry. The net income increased by 104.0% when compared to the same quarter one year prior, rising from -$89.31 million to $3.54 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.2%. Since the same quarter one year prior, revenues slightly increased by 4.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • MIM's debt-to-equity ratio is very low at 0.29 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, MIM has a quick ratio of 1.80, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has significantly increased by 126.13% to $20.44 million when compared to the same quarter last year. In addition, MI DEVELOPMENTS INC has also vastly surpassed the industry average cash flow growth rate of -4.10%.
  • The gross profit margin for MI DEVELOPMENTS INC is currently very high, coming in at 77.40%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 7.80% trails the industry average.
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MI Developments Inc. engages in the acquisition, development, construction, ownership, leasing, and management of primarily industrial and commercial properties. The company has a P/E ratio of 29.6, above the average real estate industry P/E ratio of 10.8 and above the S&P 500 P/E ratio of 17.7. MI Developments has a market cap of $1.63 billion and is part of the financial sector and real estate industry. Shares are up 16.7% year to date as of the close of trading on Thursday.

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