NEW YORK ( TheStreet) -- Evercore Partners (NYSE: EVR) has been downgraded by TheStreet Ratings from buy to hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity. Highlights from the ratings report include:
- The current debt-to-equity ratio, 0.54, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, EVR has a quick ratio of 1.78, which demonstrates the ability of the company to cover short-term liquidity needs.
- Despite the weak revenue results, EVR has outperformed against the industry average of 22.9%. Since the same quarter one year prior, revenues slightly dropped by 5.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- EVERCORE PARTNERS INC 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 year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, EVERCORE PARTNERS INC reported lower earnings of $0.29 versus $0.41 in the prior year. This year, the market expects an improvement in earnings ($1.71 versus $0.29).
- 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 193.9% when compared to the same quarter one year ago, falling from $3.59 million to -$3.37 million.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 31.52%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 185.71% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, EVR is still more expensive than most of the other companies in its industry.
-- Written by a member of TheStreet Ratings Staff