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 and expanding profit margins. 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:
  • 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 -36.31%.
  • 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.
  • 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 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.
  • 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 6.34% 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.

Jeffersonville Bancorp operates as the holding company for The First National Bank of Jeffersonville, a national-chartered bank that provides a range of commercial banking services to individuals, businesses, and municipalities. The company has a P/E ratio of 14.2, equal to the average banking industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Jeffersonville Bancorp NY has a market cap of $43.1 million and is part of the financial sector and banking industry. Shares are down 5.6% year to date as of the close of trading on Wednesday.

You can view the full Jeffersonville Bancorp NY Ratings Report or get investment ideas from our investment research center.
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