Editor's Note: 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 NEW YORK ( TheStreet) -- Apogee (Nasdaq: APOG) 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, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.
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- APOG's revenue growth has slightly outpaced the industry average of 1.8%. Since the same quarter one year prior, revenues slightly increased by 0.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- APOG's debt-to-equity ratio is very low at 0.10 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, APOG has a quick ratio of 1.73, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has significantly increased by 67.83% to -$7.66 million when compared to the same quarter last year. Despite an increase in cash flow, APOGEE ENTERPRISES INC's average is still marginally south of the industry average growth rate of 71.67%.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Building Products industry and the overall market, APOGEE ENTERPRISES INC's return on equity has significantly outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- The gross profit margin for APOGEE ENTERPRISES INC is rather low; currently it is at 24.40%. Regardless of APOG's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 1.00% trails the industry average.
-- Written by a member of TheStreet Ratings Staff