NEW YORK ( TheStreet) -- Corpbanca (NYSE: BCA) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and growth in earnings per share. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.

Highlights from the ratings report include:
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 86.45% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Commercial Banks industry. The net income increased by 5.3% when compared to the same quarter one year prior, going from $62.73 million to $66.03 million.
  • The gross profit margin for CORPBANCA is rather high; currently it is at 56.20%. Regardless of BCA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BCA's net profit margin of 22.50% compares favorably to the industry average.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Commercial Banks industry and the overall market, CORPBANCA's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • The revenue growth came in higher than the industry average of 0.5%. Since the same quarter one year prior, revenues rose by 16.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.

CORPBANCA, together with its subsidiaries, provides various commercial and retail banking services in Chile. It accepts checking accounts, savings accounts, bankers' drafts, and time deposits. The company has a P/E ratio of 19.7, below the average banking industry P/E ratio of 51 and below the S&P 500 P/E ratio of 21.5. Corpbanca has a market cap of $3.4 billion and is part of the financial sector and banking industry. Shares are down 17.5% year to date as of the close of trading on Thursday.

You can view the full Corpbanca Ratings Report or get investment ideas from our investment research center.
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