NEW YORK ( TheStreet) -- Camden National Corporation (Nasdaq: CAC) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year. Highlights from the ratings report include:
- CAMDEN NATIONAL CORP has improved earnings per share by 26.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, CAMDEN NATIONAL CORP increased its bottom line by earning $3.23 versus $2.98 in the prior year.
- The gross profit margin for CAMDEN NATIONAL CORP is currently very high, coming in at 77.00%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 23.10% significantly outperformed against the industry average.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Commercial Banks industry average. The net income increased by 26.6% when compared to the same quarter one year prior, rising from $5.59 million to $7.07 million.
- CAC, with its decline in revenue, underperformed when compared the industry average of 20.8%. Since the same quarter one year prior, revenues slightly dropped by 0.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- CAC has underperformed the S&P 500 Index, declining 5.18% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.