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, impressive record of earnings per share growth, compelling growth in net income, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 30.2%. Since the same quarter one year prior, revenues rose by 25.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- BRIDGE CAPITAL HOLDINGS reported significant earnings per share improvement 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, BRIDGE CAPITAL HOLDINGS increased its bottom line by earning $0.52 versus $0.01 in the prior year. This year, the market expects an improvement in earnings ($0.80 versus $0.52).
- 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 72.4% when compared to the same quarter one year prior, rising from $1.57 million to $2.71 million.
- Powered by its strong earnings growth of 100.00% and other important driving factors, this stock has surged by 26.26% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- The gross profit margin for BRIDGE CAPITAL HOLDINGS is currently very high, coming in at 87.50%. Regardless of BBNK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BBNK's net profit margin of 15.20% is significantly lower than the same period one year prior.
Bridge Capital Holdings operates as the bank holding company for Bridge Bank, National Association that provides commercial and retail banking services to small and medium size commercial businesses, business professionals, and retail customers primarily in California. The company has a P/E ratio of 25.1, below the average banking industry P/E ratio of 25.6 and above the S&P 500 P/E ratio of 17.7. Bridge has a market cap of $234.1 million and is part of the
industry. Shares are up 41.9% year to date as of the close of trading on Wednesday.
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-- Written by a member of TheStreet Ratings Staff