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NEW YORK (TheStreet) -- Bankwell Financial Group (BWFG) - Get Report has been downgraded by TheStreet Ratings from Buy to Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate BANKWELL FINANCIAL GROUP INC (BWFG) 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 and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 0.1%. Since the same quarter one year prior, revenues rose by 49.8%. 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.
- The gross profit margin for BANKWELL FINANCIAL GROUP INC is currently very high, coming in at 78.48%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, BWFG's net profit margin of 6.13% significantly trails the industry average.
- BANKWELL FINANCIAL GROUP INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, BANKWELL FINANCIAL GROUP INC reported lower earnings of $0.66 versus $0.77 in the prior year. This year, the market expects an improvement in earnings ($1.02 versus $0.66).
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, BANKWELL FINANCIAL GROUP INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
- In its most recent trading session, BWFG has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
- You can view the full analysis from the report here: BWFG Ratings Report
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