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, impressive record of earnings per share growth and increase in net income. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.
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Highlights from the ratings report include:
- The gross profit margin for CAPITOL FEDERAL FINL INC is rather high; currently it is at 60.30%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 21.50% is above that of the industry average.
- CAPITOL FEDERAL FINL INC has improved earnings per share by 20.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CAPITOL FEDERAL FINL INC reported lower earnings of $0.23 versus $0.41 in the prior year. This year, the market expects an improvement in earnings ($0.48 versus $0.23).
- In its most recent trading session, CFFN 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. 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.
- Net operating cash flow has decreased to $26.24 million or 21.88% when compared to the same quarter last year. Despite a decrease in cash flow of 21.88%, CAPITOL FEDERAL FINL INC is still significantly exceeding the industry average of -120.69%.
Capitol Federal Financial, Inc. is the bank holding company for Capitol Federal Savings Bank through which it provides commercial banking products and services. The company has a P/E ratio of 25.3, above the average banking industry P/E ratio of 24.7 and above the S&P 500 P/E ratio of 17.7. Capitol Federal Financial has a market cap of $1.91 billion and is part of the
industry. Shares are up 0.8% year to date as of the close of trading on Tuesday.
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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.