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 expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.
Highlights from the ratings report include:
- The gross profit margin for WAYNE SAVINGS BANCSHARES INC is currently very high, coming in at 75.90%. 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 10.70% trails the industry average.
- Net operating cash flow has slightly increased to $1.66 million or 9.65% when compared to the same quarter last year. Despite an increase in cash flow of 9.65%, WAYNE SAVINGS BANCSHARES INC is still growing at a significantly lower rate than the industry average of 1441.03%.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 14.3%. Since the same quarter one year prior, revenues slightly dropped by 7.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Thrifts & Mortgage Finance industry and the overall market on the basis of return on equity, WAYNE SAVINGS BANCSHARES INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
Wayne Savings Bancshares, Inc. operates as the holding company for Wayne Savings Community Bank, a community-oriented institution that provides consumer and business financial services in northeast Ohio. The company has a P/E ratio of 11.1, below the average banking industry P/E ratio of 11.7 and below the S&P 500 P/E ratio of 17.7. Wayne Savings has a market cap of $24.9 million and is part of the
industry. Shares are down 7.3% year to date as of the close of trading on Tuesday.
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