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, increase in stock price during the past year and attractive valuation levels. We feel these strengths outweigh the fact that the company has had somewhat 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 79.80%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 19.80% significantly outperformed against the industry average.
- After a year of stock price fluctuations, the net result is that IBOC's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. 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, slightly underperformed the industry average of 2.0%. Since the same quarter one year prior, revenues slightly dropped by 5.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The change in net income from the same quarter one year ago has significantly exceeded that of the Commercial Banks industry average, but is less than that of the S&P 500. The net income has decreased by 0.1% when compared to the same quarter one year ago, dropping from $30.42 million to $30.37 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 11.3, below the average banking industry P/E ratio of 11.9 and below the S&P 500 P/E ratio of 17.7. International has a market cap of $1.34 billion and is part of the
industry. Shares are up 4.2% year to date as of the close of trading on Tuesday.
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-- Written by a member of TheStreet RatingsStaff