NEW YORK ( TheStreet) -- Global Partners (NYSE: GLP) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally poor debt management and disappointing return on equity. Highlights from the ratings report include:
- GLP's revenue growth has slightly outpaced the industry average of 11.9%. Since the same quarter one year prior, revenues rose by 11.9%. 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.
- Net operating cash flow has increased to -$41.76 million or 30.35% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 8.77%.
- GLOBAL PARTNERS LP has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, GLOBAL PARTNERS LP reported lower earnings of $0.88 versus $1.76 in the prior year. This year, the market expects an improvement in earnings ($1.48 versus $0.88).
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, GLOBAL PARTNERS LP's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for GLOBAL PARTNERS LP is currently extremely low, coming in at 1.40%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.00% trails that of the industry average.
-- Written by a member of TheStreet Ratings Staff