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 revenue growth, compelling growth in net income and expanding profit margins. 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.
Highlights from the ratings report include:
- CTBC's revenue growth has slightly outpaced the industry average of 3.2%. Since the same quarter one year prior, revenues slightly increased by 5.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- 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 222.2% when compared to the same quarter one year prior, rising from -$0.14 million to $0.17 million.
- Powered by its strong earnings growth of 133.33% and other important driving factors, this stock has surged by 42.28% over the past year, outperforming the rise in the S&P 500 Index during the same period. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, CONNECTICUT BANK&TRUST CO/NE underperformed against that of the industry average and is significantly less than that of the S&P 500.
- Net operating cash flow has significantly decreased to -$1.82 million or 230.57% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
The Connecticut Bank and Trust Company provides commercial banking products and services in Connecticut. Connecticut Bank & Trust has a market cap of $26.8 million and is part of the
industry. Shares are up 33.4% year to date as of the close of trading on Monday.
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