Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link
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 robust revenue growth, compelling growth in net income, 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.
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Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 4.6%. Since the same quarter one year prior, revenues rose by 34.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 5379.6% when compared to the same quarter one year prior, rising from $0.14 million to $7.51 million.
- STATE BANK FINANCIAL CORP has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, STATE BANK FINANCIAL CORP reported lower earnings of $0.37 versus $0.69 in the prior year. This year, the market expects an improvement in earnings ($0.80 versus $0.37).
- The gross profit margin for STATE BANK FINANCIAL CORP is currently very high, coming in at 92.99%. Regardless of STBZ's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 20.64% trails 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, STATE BANK FINANCIAL CORP's return on equity is below that of both the industry average and the S&P 500.
State Bank Financial Corporation operates as the bank holding company for State Bank and Trust Company that offers various community banking services to individuals and businesses in middle Georgia and metropolitan Atlanta, Georgia. State Bank Financial has a market cap of $528.8 million and is part of the financial sector and banking industry. Shares are down 9.5% year to date as of the close of trading on Monday.
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