Entertainment Properties Trust Stock Upgraded (EPR)

NEW YORK ( TheStreet) -- Entertainment Properties (NYSE: EPR) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 1839850.0% when compared to the same quarter one year prior, rising from $0.00 million to $36.80 million.
  • EPR's revenue growth trails the industry average of 16.6%. Since the same quarter one year prior, revenues slightly increased by 5.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.86, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
  • The gross profit margin for ENTERTAINMENT PROPERTIES TR is rather high; currently it is at 69.30%. It has increased significantly from the same period last year. Along with this, the net profit margin of 46.40% significantly outperformed against the industry average.

Entertainment Properties Trust, a real estate investment trust (REIT), develops, owns, leases, and finances entertainment and related properties in the United States and Canada. The company has a P/E ratio of 28.2, below the average real estate industry P/E ratio of 30.6 and above the S&P 500 P/E ratio of 17.7. Entertainment has a market cap of $2.01 billion and is part of the financial sector and real estate industry. Shares are down 2.8% year to date as of the close of trading on Friday.

You can view the full Entertainment Ratings Report or get investment ideas from our investment research center.

-- Written by a member of TheStreet Ratings Staff

TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
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