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 good cash flow from operations, expanding profit margins and solid stock price performance. 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.
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Highlights from the ratings report include:
- Net operating cash flow has slightly increased to $34.81 million or 1.33% when compared to the same quarter last year. Despite an increase in cash flow, INTL BANCSHARES CORP's cash flow growth rate is still lower than the industry average growth rate of 46.53%.
- The gross profit margin for INTL BANCSHARES CORP is currently very high, coming in at 80.50%. Regardless of IBOC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, IBOC's net profit margin of 18.30% compares favorably to the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Commercial Banks industry. The net income has decreased by 24.7% when compared to the same quarter one year ago, dropping from $32.62 million to $24.55 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 financial holding company, provides commercial and retail banking services in south, central, and southeast Texas; and Oklahoma. The company has a P/E ratio of 11.9, above the average banking industry P/E ratio of 11.1 and below the S&P 500 P/E ratio of 17.7. International has a market cap of $1.24 billion and is part of the
industry. Shares are up 0.2% year to date as of the close of trading on Wednesday.
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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.