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, expanding profit margins, increase in net income, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- TOBC's very impressive revenue growth greatly exceeded the industry average of 20.8%. Since the same quarter one year prior, revenues leaped by 63.3%. 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 148.6% when compared to the same quarter one year prior, rising from $2.50 million to $6.22 million.
- The gross profit margin for TOWER BANCORP INC is currently very high, coming in at 78.80%. It has increased significantly from the same period last year. Along with this, the net profit margin of 17.30% is above that of the industry average.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- TOWER BANCORP INC has improved earnings per share by 48.6% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, TOWER BANCORP INC reported lower earnings of $0.26 versus $0.27 in the prior year. This year, the market expects an improvement in earnings ($1.22 versus $0.26).
Tower Bancorp, Inc. operates as the holding company for Graystone Tower Bank, a state-chartered bank that provides a range of financial products to consumers, businesses, and not-for-profit customers. The company has a P/E ratio of 578.8, equal to the average banking industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Tower has a market cap of $278 million and is part of the
industry. Shares are up 8.4% year to date as of the close of trading on Thursday.
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