Editor's Note: 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
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 expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and disappointing return on equity.
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Highlights from the ratings report include:
- The gross profit margin for CAMDEN NATIONAL CORP is currently very high, coming in at 81.70%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 22.60% trails the industry average.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- Despite the weak revenue results, CAC has outperformed against the industry average of 30.1%. Since the same quarter one year prior, revenues slightly dropped by 8.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- 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, CAMDEN NATIONAL CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- Net operating cash flow has decreased to $7.35 million or 35.44% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
Camden National Corporation operates as the holding company for Camden National Bank, which provides commercial and consumer banking products and services to the individuals, businesses, municipalities, non-profits, and commercial customers primarily in the State of Maine. The company has a P/E ratio of 10.4, below the S&P 500 P/E ratio of 17.7. Camden has a market cap of $259.1 million and is part of the financial sector and banking industry. Shares are up 3.4% year to date as of the close of trading on Wednesday.
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