PICO Holdings Inc. Stock Upgraded (PICO)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

NEW YORK ( TheStreet) -- PICO Holdings (Nasdaq: PICO) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and compelling growth in net income. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.

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Highlights from the ratings report include:
  • Since the same quarter one year prior, revenues leaped by 738.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Net operating cash flow has significantly increased by 143.80% to $11.27 million when compared to the same quarter last year.
  • The net income increased by 50.0% when compared to the same quarter one year prior, rising from -$15.43 million to -$7.71 million.
  • The current debt-to-equity ratio, 0.33, is low and is below the industry average, implying that there has been successful management of debt levels.
  • PICO HOLDINGS INC has improved earnings per share by 24.4% 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, PICO HOLDINGS INC continued to lose money by earning -$1.14 versus -$2.96 in the prior year. For the next year, the market is expecting a contraction of 27.2% in earnings (-$1.45 versus -$1.14).

Pico Holdings, Inc. engages in the water resource and water storage, real estate, and agribusiness activities in the United States and internationally. PICO has a market cap of $516.5 million and is part of the financial sector and insurance industry. Shares are up 12% year to date as of the close of trading on Monday.

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

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