NEW YORK ( TheStreet) -- Jeffersonville Bancorp NY (Nasdaq: JFBC) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity. Highlights from the ratings report include:
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, JFBC has underperformed the S&P 500 Index, declining 5.24% 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.
- 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 decreased by 11.0% when compared to the same quarter one year ago, dropping from $0.79 million to $0.70 million.
- The gross profit margin for JEFFERSONVILLE BANCORP is currently very high, coming in at 75.70%. Regardless of JFBC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 11.70% trails the industry average.
- Net operating cash flow has significantly increased by 50.42% to $0.54 million when compared to the same quarter last year. In addition, JEFFERSONVILLE BANCORP has also vastly surpassed the industry average cash flow growth rate of -119.54%.