NEW YORK ( TheStreet) -- Dime Community (Nasdaq: DCOM) 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, compelling growth in net income and expanding profit margins. 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:
- DIME COMMUNITY BANCSHARES has improved earnings per share by 20.0% 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. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, DIME COMMUNITY BANCSHARES increased its bottom line by earning $1.24 versus $0.79 in the prior year. This year, the market expects an improvement in earnings ($1.39 versus $1.24).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Thrifts & Mortgage Finance industry average. The net income increased by 23.3% when compared to the same quarter one year prior, going from $10.00 million to $12.34 million.
- Net operating cash flow has increased to $14.04 million or 29.59% when compared to the same quarter last year. Despite an increase in cash flow of 29.59%, DIME COMMUNITY BANCSHARES is still growing at a significantly lower rate than the industry average of 894.92%.
- Despite the weak revenue results, DCOM has outperformed against the industry average of 13.8%. Since the same quarter one year prior, revenues slightly dropped by 1.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- DCOM has underperformed the S&P 500 Index, declining 7.81% 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.