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) -- Brookfield Residential Properties (NYSE: BRP) has been upgraded by TheStreet Ratings from hold to buy. 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, solid stock price performance, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins.
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- BRP's very impressive revenue growth greatly exceeded the industry average of 27.0%. Since the same quarter one year prior, revenues leaped by 96.2%. 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 0.82, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
- Powered by its strong earnings growth of 108.00% and other important driving factors, this stock has surged by 95.61% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- Net operating cash flow has significantly increased by 394.58% to $156.03 million when compared to the same quarter last year. In addition, BROOKFIELD RESIDENTIAL PPTYS has also vastly surpassed the industry average cash flow growth rate of 41.66%.
- BROOKFIELD RESIDENTIAL PPTYS reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, BROOKFIELD RESIDENTIAL PPTYS increased its bottom line by earning $0.90 versus $0.07 in the prior year.
-- Written by a member of TheStreet Ratings Staff