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 impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- 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 two years. 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 ($0.25 versus $0.17).
- 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 159.3% when compared to the same quarter one year prior, rising from $0.82 million to $2.14 million.
- Net operating cash flow has significantly increased by 184250.00% to $7.37 million when compared to the same quarter last year. In addition, ROMA FINANCIAL CORP has also vastly surpassed the industry average cash flow growth rate of -155.82%.
- The gross profit margin for ROMA FINANCIAL CORP is rather high; currently it is at 69.60%. 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 10.70% trails the industry average.
- Despite the weak revenue results, ROMA has outperformed against the industry average of 24.0%. Since the same quarter one year prior, revenues slightly dropped by 0.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
Roma Financial Corporation operates as a holding company for Roma Bank and RomAsia Bank that provide traditional retail banking services primarily in New Jersey. The company has a P/E ratio of 58.2, above the average banking industry P/E ratio of 45 and above the S&P 500 P/E ratio of 17.7. Roma Financial has a market cap of $300.2 million and is part of the
industry. Shares are up 1.3% year to date as of the close of trading on Wednesday.
You can view the full
or get investment ideas from our