St. Joe Corporation Stock Upgraded (JOE)

NEW YORK ( TheStreet) -- St. Joe Corporation (NYSE: JOE) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, solid stock price performance and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, premium valuation and poor profit margins.

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Highlights from the ratings report include:
  • JOE's debt-to-equity ratio is very low at 0.07 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • JOE, with its decline in revenue, underperformed when compared the industry average of 7.5%. Since the same quarter one year prior, revenues fell by 12.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The gross profit margin for ST JOE CO is rather low; currently it is at 16.76%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -9.24% is significantly below that of the industry average.

The St. Joe Company, together with its subsidiaries, operates as a real estate development company in Florida. The company operates in five segments: Residential Real Estate; Commercial Real Estate; Resorts, Leisure, and Leasing Operations; Forestry; and Rural Land. St. Joe has a market cap of $2.08 billion and is part of the financial sector and real estate industry. Shares are down 2.5% year to date as of the close of trading on Thursday.

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

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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