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) -- Urstadt Biddle Properties Inc. Class A (NYSE: UBA) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share and expanding profit margins. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.
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- Despite its growing revenue, the company underperformed as compared with the industry average of 9.5%. Since the same quarter one year prior, revenues slightly increased by 7.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- URSTADT BIDDLE PROPERTIES reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, URSTADT BIDDLE PROPERTIES reported lower earnings of $0.30 versus $0.39 in the prior year. This year, the market expects an improvement in earnings ($0.65 versus $0.30).
- 39.35% is the gross profit margin for URSTADT BIDDLE PROPERTIES which we consider to be strong. Regardless of UBA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, UBA's net profit margin of 30.52% compares favorably to the industry average.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market on the basis of return on equity, URSTADT BIDDLE PROPERTIES underperformed against that of the industry average and is significantly less than that of the S&P 500.
- UBA has underperformed the S&P 500 Index, declining 6.32% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.