NEW YORK ( TheStreet) -- Northeast Community Bancorp (Nasdaq: NECB) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. 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:
  • NECB has underperformed the S&P 500 Index, declining 5.31% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • 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, NORTHEAST COMMUNITY BANCORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • 39.30% is the gross profit margin for NORTHEAST COMMUNITY BANCORP which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.50% trails the industry average.
  • Net operating cash flow has significantly increased by 1670.50% to $3.14 million when compared to the same quarter last year. In addition, NORTHEAST COMMUNITY BANCORP has also vastly surpassed the industry average cash flow growth rate of 738.37%.
  • NECB's revenue growth has slightly outpaced the industry average of 10.5%. Since the same quarter one year prior, revenues rose by 10.9%. Growth in the company's revenue appears to have helped boost the earnings per share.

Northeast Community Bancorp, Inc. operates as the holding company for Northeast Community Bank that provides various banking and financial products and services to consumers and businesses. The company has a P/E ratio of 38.8, equal to the average banking industry P/E ratio and above the S&P 500 P/E ratio of 16.8. Northeast Community has a market cap of $76.3 million and is part of the financial sector and banking industry. Shares are up 5.2% year to date as of the close of trading on Monday.

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