NEW YORK (TheStreet) -- 1st Century Bancshrs (Nasdaq:FCTY) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and weak operating cash flow. Highlights from the ratings report include:
- FCTY's revenue growth trails the industry average of 19.9%. Since the same quarter one year prior, revenues slightly increased by 9.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- The gross profit margin for 1ST CENTURY BANCSHARES INC is currently very high, coming in at 90.10%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 3.70% trails the industry average.
- 1ST CENTURY BANCSHARES INC reported flat earnings per share in the most recent quarter. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, 1ST CENTURY BANCSHARES INC continued to lose money by earning -$0.22 versus -$0.87 in the prior year.
- Net operating cash flow has declined marginally to $0.88 million or 4.57% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Commercial Banks industry. The net income has decreased by 1.7% when compared to the same quarter one year ago, dropping from $0.12 million to $0.12 million.
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