Blackstone Mortgage Trust Inc. Stock Upgraded (BXMT)

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) -- Blackstone Mortgage (NYSE: BXMT) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share and a generally disappointing performance in the stock itself.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Highlights from the ratings report include:
  • Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, BLACKSTONE MORTGAGE TR INC's return on equity exceeds that of both the industry average and the S&P 500.
  • BXMT's very impressive revenue growth greatly exceeded the industry average of 8.5%. Since the same quarter one year prior, revenues leaped by 156.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for BLACKSTONE MORTGAGE TR INC is currently very high, coming in at 75.35%. Regardless of BXMT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BXMT's net profit margin of 44.12% significantly outperformed against the industry.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 29.17%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 89.64% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • BLACKSTONE MORTGAGE TR INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, BLACKSTONE MORTGAGE TR INC reported lower earnings of $73.00 versus $111.60 in the prior year. For the next year, the market is expecting a contraction of 98.6% in earnings ($1.00 versus $73.00).

Blackstone Mortgage Trust, Inc., a real estate finance company, primarily focuses on originating mortgage loans backed by commercial real estate assets. Blackstone has a market cap of $723.6 million and is part of the financial sector and real estate industry. Shares are up 17.7% year to date as of the close of trading on Friday.

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

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more..
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

If you liked this article you might like

Income-REIT New Residential Investment Looks Worth It

Income-REIT New Residential Investment Looks Worth It

Analysts' Actions -- Atlas Financial, Blackstone Mortgage, Citrix, Neff and More

Analysts' Actions -- Atlas Financial, Blackstone Mortgage, Citrix, Neff and More

This REIT Stands to Benefit From the Impending Rise in Interest Rates

This REIT Stands to Benefit From the Impending Rise in Interest Rates

What To Hold: 3 Hold-Rated Dividend Stocks BP, BXMT, TX

What To Hold: 3 Hold-Rated Dividend Stocks BP, BXMT, TX

What To Hold: 3 Hold-Rated Dividend Stocks CXP, GOV, BXMT

What To Hold: 3 Hold-Rated Dividend Stocks CXP, GOV, BXMT