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) -- DCT Industrial (NYSE: DCT) 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, compelling growth in net income and increase in stock price during the past year. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.
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- DCT's revenue growth has slightly outpaced the industry average of 6.8%. Since the same quarter one year prior, revenues rose by 11.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 1749.6% when compared to the same quarter one year prior, rising from -$0.85 million to $13.94 million.
- DCT INDUSTRIAL TRUST INC reported flat earnings per share in the most recent quarter. 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, DCT INDUSTRIAL TRUST INC continued to lose money by earning -$0.03 versus -$0.09 in the prior year. This year, the market expects an improvement in earnings ($0.03 versus -$0.03).
- 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, DCT INDUSTRIAL TRUST INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
- The gross profit margin for DCT INDUSTRIAL TRUST INC is rather low; currently it is at 17.33%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 17.92% trails that of the industry average.