NEW YORK (
-- Roma Financial Corporation
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- Net operating cash flow has significantly increased by 285.94% to $3.93 million when compared to the same quarter last year. Despite an increase in cash flow of 285.94%, ROMA FINANCIAL CORP is still growing at a significantly lower rate than the industry average of 685.48%.
- The gross profit margin for ROMA FINANCIAL CORP is rather high; currently it is at 61.80%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 5.80% trails the industry average.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Thrifts & Mortgage Finance industry. The net income increased by 1286.4% when compared to the same quarter one year prior, rising from $0.09 million to $1.22 million.
- ROMA FINANCIAL CORP reported significant earnings per share improvement 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 year. We feel that this trend should continue. During the past fiscal year, ROMA FINANCIAL CORP increased its bottom line by earning $0.17 versus $0.10 in the prior year. This year, the market expects an improvement in earnings ($0.21 versus $0.17).
- ROMA's very impressive revenue growth greatly exceeded the industry average of 10.9%. Since the same quarter one year prior, revenues leaped by 53.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
Roma Financial Corporation operates as the bank holding company for Roma Bank and RomAsia Bank, which provide various retail banking services primarily in New Jersey. The company has a P/E ratio of 62.4, equal to the average banking industry P/E ratio and above the S&P 500 P/E ratio of 15.8. Roma Financial has a market cap of $321 million and is part of the
industry. Shares are up 2% year to date as of the close of trading on Monday.
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