NEW YORK (
-- UMB Financial Corporation
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- UMB FINANCIAL CORP's earnings per share declined by 20.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, UMB FINANCIAL CORP increased its bottom line by earning $2.26 versus $2.20 in the prior year. This year, the market expects an improvement in earnings ($2.45 versus $2.26).
- The gross profit margin for UMB FINANCIAL CORP is currently very high, coming in at 91.50%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 10.50% trails the industry average.
- Net operating cash flow has significantly increased by 109.88% to $41.09 million when compared to the same quarter last year. In addition, UMB FINANCIAL CORP has also vastly surpassed the industry average cash flow growth rate of -341.72%.
- The revenue growth came in higher than the industry average of 6.3%. Since the same quarter one year prior, revenues slightly increased by 5.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
UMB Financial Corporation, a multi-bank holding company, provides banking and other financial services in the United States. The company has a P/E ratio of 17.3, equal to the average banking industry P/E ratio and above the S&P 500 P/E ratio of 16.7. UMB Financial has a market cap of $1.6 billion and is part of the
industry. Shares are down 9.2% year to date as of the close of trading on Thursday.
You can view the full
or get investment ideas from our