NEW YORK ( TheStreet) -- Weingarten Realty Investors (NYSE: WRI) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its 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 feeble growth in the company's earnings per share. Highlights from the ratings report include:
- WRI is off 6.76% from its price level of one year ago, reflecting a combination of (a) the general market trend and (b) the company's own weaknesses, including its lower earnings per share compared to the year-earlier quarter.
- WRI, with its decline in revenue, underperformed when compared the industry average of 16.9%. Since the same quarter one year prior, revenues fell by 12.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- 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 Real Estate Investment Trusts (REITs) industry and the overall market, WEINGARTEN REALTY INVST's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for WEINGARTEN REALTY INVST is currently lower than what is desirable, coming in at 29.20%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 17.30% significantly trails the industry average.
-- Written by a member of TheStreet Ratings Staff