NEW YORK (

TheStreet

)

-- Territorial Bancorp

(Nasdaq:

TBNK

) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 14.4%. Since the same quarter one year prior, revenues slightly increased by 0.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The net income growth from the same quarter one year ago has exceeded that of the Thrifts & Mortgage Finance industry average, but is less than that of the S&P 500. The net income increased by 4.6% when compared to the same quarter one year prior, going from $3.24 million to $3.39 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 Thrifts & Mortgage Finance industry and the overall market on the basis of return on equity, TERRITORIAL BANCORP INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • Net operating cash flow has decreased to $3.66 million or 24.08% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

Territorial Bancorp Inc. operates as the bank holding company for Territorial Savings Bank, a federally-chartered savings bank that provides a range of financial services to individuals, families, and businesses in Hawaii. The company has a P/E ratio of 17.1, below the average banking industry P/E ratio of 17.2 and below the S&P 500 P/E ratio of 17.7. Territorial has a market cap of $223.5 million and is part of the

financial

sector and

banking

industry. Shares are down 3% year to date as of the close of trading on Monday.

You can view the full

Territorial Ratings Report

or get investment ideas from our

investment research center

.

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