NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, expanding profit margins, reasonable valuation levels and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 3.0%. Since the same quarter one year prior, revenues rose by 22.4%. 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 217.50% to $10.53 million when compared to the same quarter last year. In addition, AMERIS BANCORP has also vastly surpassed the industry average cash flow growth rate of 96.49%.
- The gross profit margin for AMERIS BANCORP is rather high; currently it is at 67.80%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 2.50% trails the industry average.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Commercial Banks industry and the overall market, AMERIS BANCORP's return on equity is below that of both the industry average and the S&P 500.
Ameris Bancorp operates as the bank holding company for the Ameris Bank, which provides a range of banking products and services to retail and commercial customers in Georgia, Alabama, Florida, and South Carolina. The company engages in generating deposits and originating loans. The company has a P/E ratio of 15.8, above the average banking industry P/E ratio of 13.4 and below the S&P 500 P/E ratio of 17.7. Ameris has a market cap of $258.7 million and is part of the
industry. Shares are up 15.3% year to date as of the close of trading on Tuesday.
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-- Written by a member of TheStreet RatingsStaff