NEW YORK ( TheStreet) -- Terreno Realty Corporation (NYSE: TRNO) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a generally disappointing performance in the stock itself.
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- TRNO's very impressive revenue growth greatly exceeded the industry average of 18.0%. Since the same quarter one year prior, revenues leaped by 95.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.32, is low and is below the industry average, implying that there has been successful management of debt levels.
- Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, TERRENO REALTY CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- TRNO has underperformed the S&P 500 Index, declining 7.95% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The gross profit margin for TERRENO REALTY CORP is currently extremely low, coming in at 11.70%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, TRNO's net profit margin of -4.00% significantly underperformed when compared to the industry average.
-- Written by a member of TheStreet Ratings Staff