NEW YORK ( TheStreet) -- Bryn Mawr Bank (Nasdaq: BMTC) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and expanding profit margins. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 20.0%. Since the same quarter one year prior, revenues rose by 38.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The gross profit margin for BRYN MAWR BANK CORP is currently very high, coming in at 81.60%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 17.80% is above that of the industry average.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, BRYN MAWR BANK CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • After a year of stock price fluctuations, the net result is that BMTC's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry, implying reduced upside potential.
  • Net operating cash flow has significantly decreased to $4.12 million or 61.94% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

Bryn Mawr Bank Corporation operates as the holding company for The Bryn Mawr Trust Company, which provides various commercial and retail banking services. The company has a P/E ratio of 16.2, above the average banking industry P/E ratio of 15.2 and below the S&P 500 P/E ratio of 17.7. Bryn Mawr has a market cap of $232.7 million and is part of the financial sector and banking industry. Shares are up 2.9% year to date as of the close of trading on Friday.

You can view the full Bryn Mawr Ratings Report or get investment ideas from our investment research center.
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