NEW YORK (
) 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, expanding profit margins and notable return on equity. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 20.6%. Since the same quarter one year prior, revenues slightly increased by 8.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The gross profit margin for WESTFIELD FINANCIAL INC is currently very high, coming in at 73.50%. 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 17.60% trails the industry average.
- 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, WESTFIELD FINANCIAL INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Thrifts & Mortgage Finance industry average, but is greater than that of the S&P 500. The net income increased by 81.9% when compared to the same quarter one year prior, rising from $1.29 million to $2.34 million.
- WFD has underperformed the S&P 500 Index, declining 18.49% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
Westfield Financial, Inc. operates as a bank holding company for the Westfield Bank that provides various community banking products and services to businesses and individuals in Massachusetts. The company has a P/E ratio of 28.4, above the average banking industry P/E ratio of 27.3 and above the S&P 500 P/E ratio of 17.7. Westfield Financial has a market cap of $196.3 million and is part of the
industry. Shares are down 2.3% year to date as of the close of trading on Monday.
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-- Written by a member of TheStreet Ratings Staff