NEW YORK (
) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and expanding profit margins. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.
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Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 24.7%. Since the same quarter one year prior, revenues rose by 15.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- 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 23.8% when compared to the same quarter one year prior, going from $1.66 million to $2.06 million.
- Net operating cash flow has slightly increased to $23.74 million or 3.04% when compared to the same quarter last year. Despite an increase in cash flow, BANK OF COMMERCE HOLDINGS's cash flow growth rate is still lower than the industry average growth rate of 16.76%.
- 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, BANK OF COMMERCE HOLDINGS's return on equity is below that of both the industry average and the S&P 500.
- BOCH has underperformed the S&P 500 Index, declining 5.44% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
Bank of Commerce Holdings operates as a multi-bank holding company that provides a range of financial services and products for business and consumer banking primarily in northern California. The company has a P/E ratio of 10, below the average banking industry P/E ratio of 10.3 and below the S&P 500 P/E ratio of 17.7. Bank of has a market cap of $65.2 million and is part of the
industry. Shares are up 19.1% year to date as of the close of trading on Monday.
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-- 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.