NEW YORK (
-- S.Y. Bancorp
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins, growth in earnings per share 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:
- The net income growth from the same quarter one year ago has significantly exceeded that of the Commercial Banks industry average, but is less than that of the S&P 500. The net income increased by 4.8% when compared to the same quarter one year prior, going from $6.05 million to $6.34 million.
- The gross profit margin for S Y BANCORP INC is currently very high, coming in at 78.40%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 20.60% significantly outperformed against the industry average.
- S Y BANCORP INC's earnings per share improvement from the most recent quarter was slightly positive. 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, S Y BANCORP INC increased its bottom line by earning $1.71 versus $1.66 in the prior year. This year, the market expects an improvement in earnings ($1.75 versus $1.71).
- Net operating cash flow has slightly increased to $18.72 million or 6.46% when compared to the same quarter last year. Despite an increase in cash flow of 6.46%, S Y BANCORP INC is still growing at a significantly lower rate than the industry average of 90.77%.
- SYBT, with its decline in revenue, slightly underperformed the industry average of 0.8%. Since the same quarter one year prior, revenues slightly dropped by 1.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
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 13.6, above the average banking industry P/E ratio of 12.5 and below the S&P 500 P/E ratio of 17.7. S.Y has a market cap of $291.6 million and is part of the
industry. Shares are up 14.8% year to date as of the close of trading on Tuesday.
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-- Written by a member of TheStreet RatingsStaff