Editor's Note: 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

.

NEW YORK (

TheStreet

)

-- International Bancshares Corporation

(Nasdaq:

IBOC

) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 21.9%. Since the same quarter one year prior, revenues slightly increased by 8.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for INTL BANCSHARES CORP is currently very high, coming in at 86.40%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 15.40% is above that of the industry average.
  • In its most recent trading session, IBOC has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. 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.
  • Net operating cash flow has significantly decreased to $23.80 million or 62.61% when compared to the same quarter last year. Despite a decrease in cash flow of 62.61%, INTL BANCSHARES CORP is in line with the industry average cash flow growth rate of -68.95%.
  • INTL BANCSHARES CORP's earnings per share declined by 17.5% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, INTL BANCSHARES CORP reported lower earnings of $1.69 versus $1.72 in the prior year. For the next year, the market is expecting a contraction of 16.6% in earnings ($1.41 versus $1.69).

.

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 11.7, below the S&P 500 P/E ratio of 17.7. International has a market cap of $1.22 billion and is part of the financial sector and banking industry. Shares are down 1.1% year to date as of the close of trading on Tuesday.

You can view the full

International Ratings Report

or get investment ideas from our

investment research center

.

-- Written by a member of TheStreet Ratings Staff

Editor's Note: 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

.

FREE for a limited time only: Get TheStreet Ratings #1 Stock Report NOW!

.

null