Sequential Brands Group Inc Stock Upgraded (SQBG)

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) -- Sequential Brands Group (Nasdaq: SQBG) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

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Highlights from the ratings report include:
  • SQBG's very impressive revenue growth greatly exceeded the industry average of 14.1%. Since the same quarter one year prior, revenues leaped by 478.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The gross profit margin for SEQUENTIAL BRANDS GROUP INC is rather high; currently it is at 65.44%. It has increased significantly from the same period last year. Along with this, the net profit margin of 38.21% significantly outperformed against the industry average.
  • Compared to other companies in the Textiles, Apparel & Luxury Goods industry and the overall market, SEQUENTIAL BRANDS GROUP INC's return on equity significantly trails that of both the industry average and the S&P 500.

Sequential Brands Group, Inc. owns, promotes, markets, and licenses a portfolio of consumer brands to retailers, wholesalers, and distributors primarily in the United States and internationally. Sequential Brands Group has a market cap of $210.4 million and is part of the consumer goods sector and consumer non-durables industry. Shares are up 53.1% year to date as of the close of trading on Thursday.

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

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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