CyrusOne Inc Stock Upgraded (CONE)

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) -- CyrusOne (Nasdaq: CONE) 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 compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow.

  • 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:
  • The revenue growth came in higher than the industry average of 10.5%. Since the same quarter one year prior, revenues rose by 28.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Powered by its strong earnings growth of 50.00% and other important driving factors, this stock has surged by 25.15% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • CYRUSONE INC reported significant earnings per share improvement in the most recent quarter compared to 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, CYRUSONE INC reported poor results of -$1.32 versus -$0.36 in the prior year. This year, the market expects an improvement in earnings ($0.04 versus -$1.32).
  • The gross profit margin for CYRUSONE INC is currently extremely low, coming in at 13.34%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.34% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to $6.10 million or 63.25% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

CyrusOne Inc., a real estate investment trust (REIT), is engaged in the ownership, operation, and development of enterprise-class, carrier neutral data centers. It provides data center facilities that protect and ensure the continued operation of information technology infrastructure. CyrusOne has a market cap of $582.2 million and is part of the financial sector and real estate industry. Shares are up 15% year to date as of the close of trading on Friday.

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

3x UPSIDE POTENTIAL: 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

The New Brand Loyalty: Cramer's 'Mad Money' Recap (Tuesday 12/5/17)

The New Brand Loyalty: Cramer's 'Mad Money' Recap (Tuesday 12/5/17)

Cramer: This Rally Isn't Without Meaning

Cramer: This Rally Isn't Without Meaning

Stocks Eclipsed by Nothing: Cramer's 'Mad Money' Recap (Monday 8/21/17)

Stocks Eclipsed by Nothing: Cramer's 'Mad Money' Recap (Monday 8/21/17)

Get Your Head Into the Cloud: Cramer's 'Mad Money' Recap (Monday 5/22/17)

Get Your Head Into the Cloud: Cramer's 'Mad Money' Recap (Monday 5/22/17)

Analysts' Actions -- Amazon, C.R. Bard, CyrusOne, Dow and More

Analysts' Actions -- Amazon, C.R. Bard, CyrusOne, Dow and More