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) -- Winthrop Realty (NYSE: FUR) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, expanding profit margins, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
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- FUR's very impressive revenue growth greatly exceeded the industry average of 16.1%. Since the same quarter one year prior, revenues leaped by 56.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The gross profit margin for WINTHROP REALTY TRUST is rather high; currently it is at 56.50%. It has increased significantly from the same period last year. Along with this, the net profit margin of 50.86% significantly outperformed against the industry average.
- Net operating cash flow has increased to $15.20 million or 21.81% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 7.78%.
- 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 53.4% when compared to the same quarter one year prior, rising from $9.85 million to $15.11 million.
-- Written by a member of TheStreet Ratings Staff