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 revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
- ACTIVE STOCK TRADERS: Check out TheStreet's special offer for Real Money, headlined by Jim Cramer, now!
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 31.3%. Since the same quarter one year prior, revenues rose by 21.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- CENTERSTATE BANKS INC 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, CENTERSTATE BANKS INC turned its bottom line around by earning $0.27 versus -$0.19 in the prior year. This year, the market expects an improvement in earnings ($0.28 versus $0.27).
- 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 184.7% when compared to the same quarter one year prior, rising from -$4.35 million to $3.68 million.
- The gross profit margin for CENTERSTATE BANKS INC is currently very high, coming in at 89.80%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, CSFL's net profit margin of 9.00% significantly trails the industry average.
- Powered by its strong earnings growth of 185.71% and other important driving factors, this stock has surged by 30.51% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
CenterState Banks, Inc., a multi bank holding company, provides consumer and commercial banking services to individuals, businesses, and industries in central Florida. The company has a P/E ratio of 13.4, below the average banking industry P/E ratio of 24.9 and below the S&P 500 P/E ratio of 17.7. Centerstate Banks has a market cap of $224.9 million and is part of the
industry. Shares are up 21.5% year to date as of the close of trading on Monday.
You can view the full
or get investment ideas from our
-- 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.