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 expanding profit margins, good cash flow from operations, solid stock price performance and attractive valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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 96.86%.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- IBOC, with its decline in revenue, underperformed when compared the industry average of 22.0%. 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.
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 10.7, above the average banking industry P/E ratio of 10.2 and below the S&P 500 P/E ratio of 17.7. International has a market cap of $1.2 billion and is part of the
industry. Shares are down 3.6% year to date as of the close of trading on Monday.
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