Rating Change #4
UMB Financial Corporation (UMBF) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- UMBF's revenue growth has slightly outpaced the industry average of 3.2%. Since the same quarter one year prior, revenues slightly increased by 5.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- UMB FINANCIAL CORP has improved earnings per share by 12.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, UMB FINANCIAL CORP increased its bottom line by earning $2.26 versus $2.20 in the prior year. This year, the market expects an improvement in earnings ($2.66 versus $2.26).
- The gross profit margin for UMB FINANCIAL CORP is currently very high, coming in at 94.10%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, UMBF's net profit margin of 13.90% significantly trails the industry average.
- The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Commercial Banks industry average. The net income increased by 14.2% when compared to the same quarter one year prior, going from $22.77 million to $26.02 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Commercial Banks industry and the overall market, UMB FINANCIAL CORP's return on equity is below that of both the industry average and the S&P 500.
UMB Financial Corporation, a multi-bank holding company, provides banking and other financial services to commercial, retail, government, and correspondent bank customers. The company has a P/E ratio of 15.1, below the average banking industry P/E ratio of 15.2 and below the S&P 500 P/E ratio of 17.7. UMB Financial has a market cap of $1.55 billion and is part of the financial sector and banking industry. Shares are up 5.8% year to date as of the close of trading on Friday.You can view the full UMB Financial Ratings Report or get investment ideas from our investment research center.
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