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, good cash flow from operations and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, feeble growth in the company's earnings per share and disappointing return on equity.
Highlights from the ratings report include:
- The gross profit margin for INTL BANCSHARES CORP is currently very high, coming in at 85.50%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 21.00% is above that of the industry average.
- Net operating cash flow has significantly increased by 626.27% to $34.35 million when compared to the same quarter last year. In addition, INTL BANCSHARES CORP has also vastly surpassed the industry average cash flow growth rate of 42.20%.
- IBOC, with its decline in revenue, underperformed when compared the industry average of 19.6%. Since the same quarter one year prior, revenues slightly dropped by 4.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- INTL BANCSHARES CORP' earnings per share from the most recent quarter came in slightly below the year earlier quarter. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, INTL BANCSHARES CORP reported lower earnings of $1.72 versus $1.90 in the prior year. For the next year, the market is expecting a contraction of 4.7% in earnings ($1.64 versus $1.72).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Commercial Banks industry. The net income has decreased by 4.1% when compared to the same quarter one year ago, dropping from $34.01 million to $32.62 million.
International Bancshares Corporation, a banking holding company, provides commercial and retail banking services in south, central, and southeast Texas; and Oklahoma. The company has a P/E ratio of nine, equal to the average banking industry P/E ratio and below the S&P 500 P/E ratio of 17.7. International has a market cap of $1.1 billion and is part of the
industry. Shares are down 21.9% year to date as of the close of trading on Thursday.
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