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) -- Bridgford Foods Corporation (Nasdaq: BRID) 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, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.
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- BRID's revenue growth has slightly outpaced the industry average of 2.9%. Since the same quarter one year prior, revenues slightly increased by 5.5%. 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.
- Net operating cash flow has significantly increased by 261.97% to $3.73 million when compared to the same quarter last year. In addition, BRIDGFORD FOODS CORP has also vastly surpassed the industry average cash flow growth rate of 52.52%.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. In comparison to the other companies in the Food Products industry and the overall market, BRIDGFORD FOODS CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- The gross profit margin for BRIDGFORD FOODS CORP is currently lower than what is desirable, coming in at 33.46%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.72% trails that of the industry average.