NEW YORK ( TheStreet) -- Brookdale Senior Living Incorporated (NYSE: BKD) 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, increase in net income and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including generally poor debt management, disappointing return on equity and poor profit margins. Highlights from the ratings report include:
- BKD's revenue growth has slightly outpaced the industry average of 11.0%. Since the same quarter one year prior, revenues rose by 16.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Health Care Providers & Services industry average. The net income increased by 16.0% when compared to the same quarter one year prior, going from -$12.31 million to -$10.34 million.
- BROOKDALE SENIOR LIVING INC has improved earnings per share by 10.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BROOKDALE SENIOR LIVING INC reported poor results of -$0.56 versus -$0.41 in the prior year. This year, the market expects an improvement in earnings ($0.07 versus -$0.56).
- The gross profit margin for BROOKDALE SENIOR LIVING INC is rather low; currently it is at 19.60%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.50% trails that of the industry average.
- Net operating cash flow has significantly decreased to $45.69 million or 50.69% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
-- Written by a member of TheStreet RatingsStaff