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 revenue growth, expanding profit margins, good cash flow from operations, notable return on equity and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 22.6%. Since the same quarter one year prior, revenues slightly increased by 6.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The gross profit margin for NORTHFIELD BANCORP INC is currently very high, coming in at 75.90%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 18.50% is above that of the industry average.
- Net operating cash flow has significantly increased by 108.20% to $15.15 million when compared to the same quarter last year. In addition, NORTHFIELD BANCORP INC has also vastly surpassed the industry average cash flow growth rate of -16.43%.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Thrifts & Mortgage Finance industry and the overall market on the basis of return on equity, NORTHFIELD BANCORP INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- NORTHFIELD BANCORP INC has improved earnings per share by 8.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, NORTHFIELD BANCORP INC increased its bottom line by earning $0.42 versus $0.33 in the prior year. For the next year, the market is expecting a contraction of 8.3% in earnings ($0.39 versus $0.42).
Northfield Bancorp, Inc. operates as the holding company for Northfield Bank that provides banking services primarily to individuals and corporate customers in Richmond and Kings Counties in New York, and Union and Middlesex Counties in New Jersey. The company has a P/E ratio of 34.6, equal to the average banking industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Northfield has a market cap of $600.9 million and is part of the
industry. Shares are up 5.1% year to date as of the close of trading on Monday.
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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.