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NEW YORK (TheStreet) -- Artisan Partners Asset Management (APAM) has been downgraded by TheStreet Ratings from Hold to Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate ARTISAN PARTNERS ASSET MGMT (APAM) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Capital Markets industry and the overall market on the basis of return on equity, ARTISAN PARTNERS ASSET MGMT underperformed against that of the industry average and is significantly less than that of the S&P 500.
- APAM has underperformed the S&P 500 Index, declining 18.67% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- ARTISAN PARTNERS ASSET MGMT 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, ARTISAN PARTNERS ASSET MGMT reported poor results of -$2.02 versus $0.00 in the prior year. This year, the market expects an improvement in earnings ($3.18 versus -$2.02).
- 38.55% is the gross profit margin for ARTISAN PARTNERS ASSET MGMT which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, APAM's net profit margin of 9.62% significantly trails the industry average.
- Net operating cash flow has increased to $91.00 million or 27.72% when compared to the same quarter last year. In addition, ARTISAN PARTNERS ASSET MGMT has also vastly surpassed the industry average cash flow growth rate of -184.83%.
- You can view the full analysis from the report here: APAM Ratings Report