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"We rate SOUTHWEST BANCORP INC (OKSB) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, 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 analysis by TheStreet Ratings Team goes as follows:
- OKSB's revenue growth has slightly outpaced the industry average of 4.1%. Since the same quarter one year prior, revenues slightly increased by 5.3%. 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 SOUTHWEST BANCORP INC is currently very high, coming in at 103.34%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, OKSB's net profit margin of 25.88% compares favorably to the industry average.
- 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. When compared to other companies in the Commercial Banks industry and the overall market, SOUTHWEST BANCORP INC's return on equity is below that of both the industry average and the S&P 500.
- SOUTHWEST BANCORP INC's earnings per share declined by 11.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, SOUTHWEST BANCORP INC increased its bottom line by earning $1.07 versus $0.87 in the prior year. For the next year, the market is expecting a contraction of 16.8% in earnings ($0.89 versus $1.07).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Commercial Banks industry. The net income has decreased by 13.7% when compared to the same quarter one year ago, dropping from $6.83 million to $5.90 million.
- You can view the full analysis from the report here: OKSB Ratings Report