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) -- Arbor Realty (NYSE: ABR) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and revenue growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.
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- 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 250.1% when compared to the same quarter one year prior, rising from -$10.36 million to $15.55 million.
- ABR's revenue growth trails the industry average of 18.7%. Since the same quarter one year prior, revenues slightly increased by 6.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- ARBOR REALTY TRUST INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, ARBOR REALTY TRUST INC swung to a loss, reporting -$1.53 versus $4.43 in the prior year.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, ARBOR REALTY TRUST INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for ARBOR REALTY TRUST INC is currently extremely low, coming in at 13.70%. It has decreased from the same quarter the previous year. Despite the weak results of the gross profit margin, the net profit margin of 55.60% has significantly outperformed against the industry average.
-- Written by a member of TheStreet Ratings Staff