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) -- TECO Energy (NYSE: TE) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and a generally disappointing performance in the stock itself.
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- Despite the stagnant revenue growth, the company outperformed against the industry average of 0.2%. Since the same quarter one year prior, revenues have remained constant. Even though the company's revenue remained stagnant, the earnings per share decreased.
- Net operating cash flow has slightly increased to $152.50 million or 2.28% when compared to the same quarter last year. Despite an increase in cash flow, TECO ENERGY INC's cash flow growth rate is still lower than the industry average growth rate of 26.07%.
- The gross profit margin for TECO ENERGY INC is currently lower than what is desirable, coming in at 25.83%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 6.10% trails that of the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Multi-Utilities industry. The net income has decreased by 6.9% when compared to the same quarter one year ago, dropping from $45.10 million to $42.00 million.