Skip to main content

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.  TheStreet Ratings quantitative algorithm evaluates over 4,300 stocks on a daily basis by 32 different data factors and assigns a unique buy, sell, or hold recommendation on each stock.  Click here to learn more.

NEW YORK (TheStreet) -- Bancorp (TBBK) has been upgraded by TheStreet Ratings from Sell to Hold with a ratings score of C.  TheStreet Ratings Team has this to say about their recommendation:

"We rate BANCORP INC (TBBK) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income."

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 5.2%. Since the same quarter one year prior, revenues rose by 18.2%. 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 increased to $87.78 million or 42.50% when compared to the same quarter last year. In addition, BANCORP INC has also vastly surpassed the industry average cash flow growth rate of -66.71%.
  • When compared to other companies in the Commercial Banks industry and the overall market, BANCORP INC's return on equity is below that of both the industry average and the S&P 500.
  • BANCORP INC's earnings per share declined by 33.3% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, BANCORP INC reported lower earnings of $0.46 versus $0.50 in the prior year. For the next year, the market is expecting a contraction of 170.7% in earnings (-$0.33 versus $0.46).
  • 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 significantly decreased by 451.0% when compared to the same quarter one year ago, falling from $4.79 million to -$16.81 million.
  • You can view the full analysis from the report here: TBBK Ratings Report

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.