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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 compelling growth in net income, good cash flow from operations, expanding profit margins, solid stock price performance and notable return on equity. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
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Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Thrifts & Mortgage Finance industry. The net income increased by 1721.4% when compared to the same quarter one year prior, rising from $0.89 million to $16.25 million.
- Net operating cash flow has slightly increased to $50.20 million or 6.50% when compared to the same quarter last year. In addition, TFS FINANCIAL CORP has also vastly surpassed the industry average cash flow growth rate of -248.67%.
- The gross profit margin for TFS FINANCIAL CORP is rather high; currently it is at 67.90%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 15.76% trails the industry average.
- This stock has managed to rise its share value by 35.78% over the past twelve months. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- TFS FINANCIAL CORP has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. Stable earnings per share over the past two years indicate the company has sound management over its earnings and share float. We anticipate the company beginning to experience more growth in the coming year. During the past fiscal year, TFS FINANCIAL CORP reported lower earnings of $0.03 versus $0.04 in the prior year. This year, the market expects an improvement in earnings ($0.18 versus $0.03).
TFS Financial Corporation operates as a holding company for Third Federal Savings and Loan Association of Cleveland. It provides retail consumer banking, such as mortgage lending, deposit gathering, and other financial services. TFS Financial has a market cap of $3.42 billion and is part of the financial sector and banking industry. Shares are up 14.9% year to date as of the close of trading on Monday.
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