Bridgford Foods Corporation Stock Downgraded (BRID)

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.

  • 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:
  • 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.

Bridgford Foods Corporation, together with its subsidiaries, manufactures, markets, and distributes frozen, refrigerated, and snack food products in the United States and Canada. It operates in two segments, Frozen Food Products, and Refrigerated and Snack Food Products. Bridgford has a market cap of $91.3 million and is part of the consumer goods sector and food & beverage industry. Shares are up 4.4% year to date as of the close of trading on Wednesday.

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

STOCKS TO BUY: 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

Analysts' Actions -- Dupont, Infoblox, Entergy and More

5 Halloween Disaster Preparedness Gadgets

Bridgford Stock Soars (BRID)

Bridgford Stock Soars (BRID)

Del Monte Stock Pops on Acquisition Offer

Del Monte Stock Pops on Acquisition Offer