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. aTheStreet Ratings quantitative algorithm evaluates over 4,300 stocks on a daily basis by 32 different data factors and assigns a unique buy, sell, or hold recommendation on each stock. aClick here to learn more. NEW YORK (TheStreet) -- Rexnorda has been downgraded by TheStreet Ratings from Buy to Hold with a ratings score of C. aTheStreet Ratings Team has this to say about their recommendation: "We rate REXNORD CORP (RXN) a HOLD. The primary factors that have impacted our rating are mixed -asome indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk." Must Read: Warren Buffett's 25 Favorite Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Highlights from the analysis by TheStreet Ratings Team goes as follows: RXN's revenue growth has slightly outpaced the industry average of 4.2%. Since the same quarter one year prior, revenues slightly increased by 0.2%. 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 123.44% to $6.40 million when compared to the same quarter last year. In addition, REXNORD CORP has also vastly surpassed the industry average cash flow growth rate of -24.42%. 38.13% is the gross profit margin for REXNORD CORP which we consider to be strong. Regardless of RXN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 2.37% trails the industry average. 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. In comparison to the other companies in the Machinery industry and the overall market, REXNORD CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500. The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Machinery industry average. The net income has decreased by 12.3% when compared to the same quarter one year ago, dropping from $13.80 million to $12.10 million. You can view the full analysis from the report here: RXN Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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