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) -- CorEnergy Infrastructure (NYSE: CORR) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
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- The revenue growth came in higher than the industry average of 5.2%. Since the same quarter one year prior, revenues rose by 23.0%. 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 660.04% to $8.12 million when compared to the same quarter last year. In addition, CORENERGY INFRASTRUCTURE TR has also vastly surpassed the industry average cash flow growth rate of 12.66%.
- CORENERGY INFRASTRUCTURE TR's earnings per share declined by 30.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, CORENERGY INFRASTRUCTURE TR reported lower earnings of $0.18 versus $1.35 in the prior year. This year, the market expects an improvement in earnings ($0.28 versus $0.18).
- The gross profit margin for CORENERGY INFRASTRUCTURE TR is currently lower than what is desirable, coming in at 25.97%. Regardless of CORR's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, CORR's net profit margin of 20.94% compares favorably to the industry average.
- The share price of CORENERGY INFRASTRUCTURE TR has not done very well: it is down 6.66% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Despite the stock's decline during the last year, it is still somewhat more expensive (in proportion to its earnings over the last year) than most other stocks in its industry. We feel, however, that other strengths this company displays offset this slight negative.