NEW YORK (TheStreet) -- First Interstate Bancsystem (Nasdaq:FIBK) 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, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
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- The revenue growth came in higher than the industry average of 25.3%. Since the same quarter one year prior, revenues slightly increased by 1.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- FIRST INTERSTATE BANCSYSTEM has improved earnings per share by 30.0% 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 two years. We feel that this trend should continue. During the past fiscal year, FIRST INTERSTATE BANCSYSTEM increased its bottom line by earning $0.96 versus $0.79 in the prior year. This year, the market expects an improvement in earnings ($1.11 versus $0.96).
- 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 28.5% when compared to the same quarter one year prior, rising from $9.51 million to $12.21 million.
- The gross profit margin for FIRST INTERSTATE BANCSYSTEM is currently very high, coming in at 79.40%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, FIBK's net profit margin of 12.80% significantly trails the industry average.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Commercial Banks industry and the overall market, FIRST INTERSTATE BANCSYSTEM's return on equity is below that of both the industry average and the S&P 500.
-- Written by a member of TheStreet Ratings Staff
TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
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