TSC Ratings' Updates: BancorpSouth

BXS has improved earnings per share by 13.9% in the most-recent quarter compared with the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BXS increased its bottom line by earning $1.68 vs. $1.57 in the prior year. This year, the market expects an improvement in earnings ($1.78 vs. $1.68).

The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the commercial banks industry. The net income increased by 11.8% when compared with the same quarter one year prior, going from $35.88 million to $40.13 million.

The gross profit margin for BXS is rather high; currently it is at 69.00%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 16.10% is above that of the industry average.

Net operating cash flow has significantly increased by 725.32% to $48.74 million when compared with the same quarter last year. Despite an increase in cash flow of 725.32%, BXS is still growing at a significantly lower rate than the industry average of 2651.99%.

The return on equity has improved slightly when compared with the same quarter one year prior. This can be construed as a modest strength in the organization. Compared with other companies in the commercial banks industry and the overall market on the basis of return on equity, BXS has outperformed in comparison with the industry average but has underperformed when compared with that of the S&P 500.