NEW YORK (
-- S.Y. Bancorp
) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth and expanding profit margins. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.
Highlights from the ratings report include:
- SYBT has underperformed the S&P 500 Index, declining 12.94% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
- The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Commercial Banks industry average. The net income increased by 7.9% when compared to the same quarter one year prior, going from $5.56 million to $6.00 million.
- 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 Commercial Banks industry and the overall market on the basis of return on equity, S Y BANCORP INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- SYBT's revenue growth trails the industry average of 20.7%. Since the same quarter one year prior, revenues slightly increased by 1.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- S Y BANCORP INC has improved earnings per share by 7.5% 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. This trend suggests that the performance of the business is improving. During the past fiscal year, S Y BANCORP INC increased its bottom line by earning $1.66 versus $1.19 in the prior year. This year, the market expects an improvement in earnings ($1.79 versus $1.66).
S.Y. Bancorp, Inc. operates as the bank holding company for Stock Yards Bank & Trust Company that provides commercial and personal banking services in Louisville, Kentucky; southern Indiana and Indianapolis, Indiana; and Cincinnati, Ohio. The company has a P/E ratio of 12.5, equal to the average banking industry P/E ratio and below the S&P 500 P/E ratio of 17.7. S.Y has a market cap of $299 million and is part of the
industry. Shares are down 12.5% year to date as of the close of trading on Monday.
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