NEW YORK ( TheStreet) -- NASB Financial (Nasdaq: NASB) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, feeble growth in its earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:
  • Despite the weak revenue results, NASB has outperformed against the industry average of 30.1%. Since the same quarter one year prior, revenues fell by 11.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Thrifts & Mortgage Finance industry and the overall market on the basis of return on equity, NASB FINANCIAL INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Thrifts & Mortgage Finance industry. The net income has significantly decreased by 328.4% when compared to the same quarter one year ago, falling from $1.33 million to -$3.04 million.
  • NASB FINANCIAL INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, NASB FINANCIAL INC reported lower earnings of $0.80 versus $2.37 in the prior year.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 25.21%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 329.41% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.

NASB Financial, Inc. operates as the bank holding company for North American Savings Bank, F.S.B. that provides various banking and financial services in the United States. The company has a P/E ratio of 11.2, equal to the average banking industry P/E ratio and below the S&P 500 P/E ratio of 17.7. NASB Financial has a market cap of $78.4 million and is part of the financial sector and banking industry. Shares are down 39.6% year to date as of the close of trading on Wednesday.

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

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