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 attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income 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 81.40%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, IBOC's net profit margin of 19.80% significantly trails the industry average.
- Net operating cash flow has significantly increased by 69.38% to $63.68 million when compared to the same quarter last year. Despite an increase in cash flow of 69.38%, INTL BANCSHARES CORP is still growing at a significantly lower rate than the industry average of 291.75%.
- 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 8.7% when compared to the same quarter one year ago, dropping from $33.55 million to $30.63 million.
- 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. When compared to other companies in the Commercial Banks industry and the overall market, INTL BANCSHARES CORP's return on equity is below that of both the industry average and the S&P 500.
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 9.2, 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 $1.04 billion and is part of the
industry. Shares are down 19.5% year to date as of the close of trading on Tuesday.
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