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) -- Gyrodyne Company of America (Nasdaq: GYRO) has been downgraded by TheStreet Ratings from hold to sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.
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- GYRO's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 92.23%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- GYRODYNE CO OF AMERICA INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, GYRODYNE CO OF AMERICA INC reported lower earnings of $31.06 versus $66.80 in the prior year.
- 48.63% is the gross profit margin for GYRODYNE CO OF AMERICA INC which we consider to be strong. Regardless of GYRO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GYRO's net profit margin of -106.20% significantly underperformed when compared to the industry average.
- Net operating cash flow has increased to -$3.88 million or 29.29% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 11.18%.
- 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 76.7% when compared to the same quarter one year prior, rising from -$5.64 million to -$1.32 million.