NEW YORK ( TheStreet) -- Southwest Bancorp (Nasdaq: OKSB) 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, deteriorating net income, disappointing return on equity, poor profit margins and feeble growth in its earnings per share. Highlights from the ratings report include:
- SOUTHWEST BANCORP 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, SOUTHWEST BANCORP INC increased its bottom line by earning $0.74 versus $0.59 in the prior year. For the next year, the market is expecting a contraction of 160.1% in earnings (-$0.45 versus $0.74).
- The gross profit margin for SOUTHWEST BANCORP INC is rather low; currently it is at 24.10%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -8.50% is significantly below that of the industry average.
- 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 Commercial Banks industry and the overall market on the basis of return on equity, SOUTHWEST BANCORP 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 Commercial Banks industry. The net income has significantly decreased by 167.3% when compared to the same quarter one year ago, falling from $4.41 million to -$2.97 million.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 56.81%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 210.52% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, OKSB is still more expensive than most of the other companies in its industry.