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 revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 0.7%. Since the same quarter one year prior, revenues rose by 18.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- BANCORP INC has improved earnings per share by 25.0% 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, BANCORP INC turned its bottom line around by earning $0.29 versus -$0.03 in the prior year. This year, the market expects an improvement in earnings ($0.59 versus $0.29).
- 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 61.1% when compared to the same quarter one year prior, rising from $2.04 million to $3.29 million.
- The gross profit margin for BANCORP INC is currently very high, coming in at 75.30%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 10.40% is above that of the industry average.
- Net operating cash flow has significantly increased by 154.53% to $7.21 million when compared to the same quarter last year. In addition, BANCORP INC has also vastly surpassed the industry average cash flow growth rate of 91.55%.
The Bancorp, Inc. operates as the holding company for The Bancorp Bank that provides various commercial and retail banking and related products and services to small and mid-size businesses and their principals. The company has a P/E ratio of 34.6, above the average banking industry P/E ratio of 31.5 and above the S&P 500 P/E ratio of 17.7. Shares are up 33.9% year to date as of the close of trading on Tuesday.