NEW YORK ( TheStreet) -- Jeffersonville Bancorp NY (Nasdaq: JFBC) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Highlights from the ratings report include:
- 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, JEFFERSONVILLE BANCORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- JFBC, with its decline in revenue, underperformed when compared the industry average of 21.6%. Since the same quarter one year prior, revenues slightly dropped by 2.9%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- JEFFERSONVILLE BANCORP's earnings per share declined by 10.5% in the most recent quarter compared to the same quarter a year ago. Stable Earnings per share over the past year indicate the company has sound management over its earnings and share float. During the past fiscal year, JEFFERSONVILLE BANCORP increased its bottom line by earning $0.74 versus $0.73 in the prior year.
- 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 -121.04%.