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) -- Greenhill (NYSE: GHL) has been downgraded by TheStreet Ratings from buy to hold. Among the primary strengths of the company is its generally strong cash flow from operations. At the same time, however, we also find weaknesses including deteriorating net income, premium valuation and poor profit margins.
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- Net operating cash flow has increased to $22.38 million or 38.29% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 9.17%.
- GREENHILL & CO INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. 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, GREENHILL & CO INC increased its bottom line by earning $1.56 versus $1.38 in the prior year. This year, the market expects an improvement in earnings ($1.61 versus $1.56).
- The revenue fell significantly faster than the industry average of 5.2%. Since the same quarter one year prior, revenues fell by 45.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The gross profit margin for GREENHILL & CO INC is currently extremely low, coming in at 3.31%. It has decreased significantly from the same period last year. Along with this, the net profit margin of 0.54% significantly trails the industry average.