NEW YORK ( TheStreet) -- INTL FCStone (Nasdaq: INTL) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally poor debt management and poor profit margins. Highlights from the ratings report include:
- Net operating cash flow has significantly increased by 1167.74% to $33.10 million when compared to the same quarter last year. In addition, INTL FCSTONE INC has also vastly surpassed the industry average cash flow growth rate of -477.13%.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Capital Markets industry and the overall market on the basis of return on equity, INTL FCSTONE INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- Despite the weak revenue results, INTL has outperformed against the industry average of 20.6%. Since the same quarter one year prior, revenues slightly dropped by 0.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Capital Markets industry. The net income has significantly decreased by 110.0% when compared to the same quarter one year ago, falling from $4.00 million to -$0.40 million.
- The debt-to-equity ratio of 1.15 is relatively high when compared with the industry average, suggesting a need for better debt level management.
-- Written by a member of TheStreet Ratings Staff