NEW YORK ( TheStreet) -- Cedar Realty (NYSE: CDR) 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, largely solid financial position with reasonable debt levels by most measures and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and weak operating cash flow. Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 17.2%. Since the same quarter one year prior, revenues slightly increased by 8.1%. 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.
- Despite the current debt-to-equity ratio of 1.53, it is still below the industry average, suggesting that this level of debt is acceptable within the Real Estate Investment Trusts (REITs) industry.
- The gross profit margin for CEDAR REALTY TRUST INC is rather low; currently it is at 16.80%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -11.70% is significantly below that of the industry average.
- Net operating cash flow has decreased to $17.88 million or 16.67% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
-- Written by a member of TheStreet RatingsStaff